China's trade surplus with India to top $4b

BEIJING: China’s trade surplus with India is set to cross the $4-billion mark this year, enabling it to enjoy a favourable trade balance for the first time in Sino-Indian bilateral trade.

According to latest available Chinese customs statistics, the total trade during first 11 months of 2006 (January to November) was $22.38 billion.

Indian exports to China during the period amounted to $9.40 billion, while Indian imports from China surged to $12.98 billion, allowing China to enjoy a trade surplus of $3.58 billion.

With trade figure for December 2006 yet to be released, industry sources said China’s trade surplus with India is set to cross $4 billion. China is enjoying a trade surplus with India for the first time in history.

Analysts say the trade imbalance is mainly due to dwindling Chinese import of iron ore from India, while growing demand for Chinese goods from India.

Official figures show China’s aggregate trade surplus surged to $156.52 billion in the year to November 2006, dwarfing the $102 billion for the whole of 2005 despite the government’s efforts to balance payments.

The government has not yet released the December trade figures. However, analysts predict that China’s trade surplus is expected to break $200-billion mark in 2006.