China's trade surplus in August rose almost 33 percent over the same month last year to US$24.98 billion, the General Administration of Customs said on Tuesday.

 

The figure was slightly higher than the US$24.36 billion from July, but short of the record US$26.91 billion from June.

 

In August, exports reached an all-time high of US$111.4 billion, up 22.7 percent year-on-year yet down 11.5 percentage points over July. Imports grew 20 percent to US$86.4 billion, also a record.

 

However, the administration said in its monthly report, "The slowdown in export growth and a steady increase in imports indicated China's efforts to improve foreign trade have begun to pay off."

 

Since June, the country has taken steps to lower the surplus, including imposing export tariffs, removing or cutting tax rebates on exports, and expanding the category of processed trade products listed as "discouraged."

 

China's trade volume totaled US$1.37 trillion for the first eight months of 2007, up 24 percent on last year, according to the report.

 

The European Union remained China's largest trading partner, with bilateral trade volume standing at US$223.3 billion from January to August, up 28.2 percent compared with the same period last year.

 

China and the EU needed a "balanced development strategy" for an open investment environment, Joerg Wuttke, president of the European Union Chamber of Commerce in China, said on Tuesday at a press conference on the release of its seventh annual European Business in China Position Paper.

 

While China's economic growth has re-enforced the bilateral strategic partnership, it also led to a "more complex relationship," said the paper, citing the EU's growing trade deficit with China.

 

China's surplus with the EU reached US$91.7 billion in 2006, according to statistics from the Ministry of Commerce.

 

The EU chamber's figure showed a bigger surplus in the corresponding period, which was 128.3 billion euros (US$167 billion). The paper predicted China's trade surplus to the EU could top 200 billion euros (US$260 billion) by the end of this year.

 

"The current trade imbalance is economically unsustainable for China and politically unsustainable in Europe," said the president.

 

The surplus could increase inflationary pressures in China while the deficit might prompt more protectionist measures on the EU side, said Wuttke, suggesting China make more efforts to boost domestic demand.

 

The US and Japan are China's second and third largest trading partners, with total trading volume both up around 15 percent to US$194 billion and US$150 billion, respectively.

 

The ASEAN (Association of Southeast Asian Nations) group ranked fourth in terms of trade volume, which rose 26.8 percent year-on-year to US$128 billion.

 

(Xinhua News Agency September 12, 2007)