China Projects Trade Surplus to Hit $150B; Forex Reserves to Top $1 trillion
The Commerce Ministry earlier forecast a trade surplus of at least $140 billion this year. The trade surplus was $102 billion in 2005. The expanding trade surplus has driven the country's foreign exchange reserves to over $980 billion -- the largest in the world -- and they are expected soon to top $1 trillion.
Earlier in the week, the government reported that China's monthly trade surplus hit a record monthly high of $23.8 billion in October, the fifth new monthly record this year.
The Chinese government has let its currency, the yuan, rise by about 3% against the U.S. dollar over the past 16 months, which should help close the gap by making Chinese exports cost more, while imports are more attractive to Chinese consumers. But U.S. say Beijing is moving too slowly.