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1st-half surplus forecast over $100b

(AP)
Updated: 2007-07-03 10:49

A senior government economist says China's trade surplus for the first half of this year is expected to top $100 billion, Xinhua news agency said Monday, amid calls by US lawmakers for punitive action against China.

Total trade with the United States for the first half is expected to top US$1 trillion, up 24 percent from the year-earlier period, Xinhua said, citing Yao Jingyuan, chief economist for the National Bureau of Statistics.

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"The trade surplus reached $85.7 billion in January-May, and for the first half of the year will exceed $100 billion," Xinhua said, citing Yao.

American lawmakers are calling for legislation to impose highertariffs on imports of Chinese goods or take other punitive steps if Beijing fails to ease currency controls that some say are broadening the surplus.

China reported a global trade surplus last year of $177.5 billion.

The growing gap also is causing financial problems for the central government, which is forced to drain billions of dollars a month from the economy to reduce pressure for prices to rise.

Chinese government says it is not actively pursuing a surplus and has taken steps to slow exports, including revoked rebates of value-added taxes for exporters.