*NEWS*CHINA TRADE SURPLUS HITS RECORD

China’s trade surplus hits record
With
three months of 2006 left, China’s trade surplus for the year has
already hit $110bn (£59bn), breaking the record set in 2005, official
data has shown.The gap between what China exports to and imports from
the rest of the world narrowed to $15.3bn in September from August’s
monthly record of $18.8bn.Some of China’s trading partners, especially
the US, have argued China keeps the yuan low to boost exports.Last
week, the European Union imposed new tariffs on shoe imports from China.

Domestic consumption
“The
smaller trade surplus might be a relief for the authorities,” said Xiao
Minjie, an economist at Daiwa Institute of Research in Shanghai.”I
think the trade surplus is likely to narrow to around $10bn next
month.”But the upward pressure on the yuan will persist.”China wants to
redirect some of its strong export growth towards greater domestic
consumption in order to make its economy more balanced.The September
figures showed exports were up 31% and imports 22% higher from the same
month in 2005.The trade imbalance has seen the country’s foreign
reserves rocket to $1 trillion.This has helped to create an investment
boom which the government is trying to dampen down in order to prevent
the economy growing too fast.China’s economy is currently expected to
grow by more than 10% this year