Trade surplus hits new high but growth set to slow
Despite reporting slower growth in exports as a result of the US subprime crisis and the falling dollar, China's trade surplus increased 47.7% in 2007 to reach a record $262.2 billion. Total trade for 2007 increased 23.5% year-on-year to $2.17 trillion, with exports rising 25.7% to $1.22 trillion while imports climbed 20.8% to $955.8 billion.
The EU remained the country’s largest partner with bilateral trade rising 27% to $356.15 billion, followed by the USA at $302.08 billion (+15%) and Japan at $236.02 billion (+13.9%).
However, in spite of the sharp rise in 2007, the Bank of China is predicting a slowdown in 2008, with total trade forecast to expand by only 15%, compared with 23.5% last year as the yuan is expected to appreciate more quickly against the US$.
