December 02, 2007	Sunday	Ziqa’ad 21, 1428

SHANGHAI, Dec 1: China’s trade surplus is expected to reach $260 billion in 2007, rising less than forecast earlier thanks to changes in the country’s trade policies, a Ministry of Finance official said on Saturday.

China, which has been trying to rein in its massive trade surplus under pressure from its trading partners, will further adjust some export policies, including raising export taxes, on Jan. 1, 2008, said Wang Wei, who heads the ministry’s custom tax department.

China’s expected trade surplus in 2007 will be much lower than $300 billion we forecast early this year, due to the government’s efforts to decrease exports, Wang told Reuters on the sidelines of an industry conference organised by online consultancy Mysteel.

China’s trade surplus rose 59 percent to $212.4 billion for the first 10 months from a year earlier, outstripping the full-year 2006 sum of $177.47 billion, with a record monthly trade surplus of $27.05 billion for October.

The final months of the year are usually busy for Chinese factories shipping Christmas orders.

Wang said, however, that the central government’s policies to restrain exports and promote imports have been having an impact, and more adjustments will be announced in coming months.

Another series of changes in export policies will be implemented starting from January 1, 2008, Wang said, without elaborating.

China is expected to increase export taxes on some commodities including steel products, refined lead and zinc, at the start of 2008, also partly due to the country’s attempt to hold more resources in Chinese hands.

—Reuters