China's trade surplus will likely swell to between US$250 billion and US$300 billion this year, while the surplus for the first four months of 2007 totaled US$63.3 billion, up 88% from the same period last year, the Wall Street Journal reported. In an effort to trim the surplus, Beijing cut export-tax rebates and raised export taxes for
high-polluting, energy-intensive products. However, the National Development and Reform Commission said neither a stronger
yuan nor cuts in export-tax rebates would shift export orders away from
China, as the world's fourth-largest economy enjoys pricing power in
the global market. The commission acknowledged challenges from the trade surplus, such as
excess liquidity, pollution, environmental damage and trade frictions,
but said it would take time to strike a balance in trade.
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