China's 2011 trade surplus likely to decline to US$100 bln

By Kim Young-gyo
HONG KONG, May 16 (Yonhap) -- China's trade surplus will likely decline to US$100 billion this year, a monetary policy maker said Monday, indicating the country will continue to increase imports.
Li Daokuim, a former member of the People's Bank of China monetary policy committee, said the country's trade surplus will drop at least 35 percent from last year's $183.1 billion. The 2010 figure was a 6.4 percent decrease from a year earlier.
China's trade surplus unexpectedly jumped in April as exports soared to a record high, the Chinese customs authorities said last week.
According to the General Administration of Customs, the country's trade surplus stood at $11.43 billion last month, compared with $140 million in the previous month.
Exports increased 29.9 percent on-year in April to $155.69 billion, and imports grew 21.8 percent from a year earlier to $144.26 billion.
Many analysts expected a smaller surplus as the world's second-largest economy seeks to maintain its economic growth by encouraging domestic spending so as to reduce its heavy reliance on exports.
China's trade balance turned red in February, recording the largest trade deficit since February 2004. However, it swung back into the black in March.
April's surprise surplus will put pressure on China to further appreciate its currency, as the United States has been arguing that China artificially lowers the value of the yuan, giving its exporters an unfair advantage in overseas markets. China has continuously resisted such arguments.
ygkim@yna.co.kr