China's trade surplus had been dropping for the last two consecutive months in 2007 and reached US$22.7 billion in December, down 14.2 per cent over November, according to statistics from China Customs quoted by Logistics Week.

Last December, China's export value increased 21.7 per cent year on year to US$114.4 billion, 1.1 per cent slower than November's growth. Imports rose 25.7 per cent to $91.7 billion, 1.8 per cent up on November. The slower export growth and faster import growth resulted in a smaller trade surplus. The trade surplus in 2007 came to $262.2 billion, up 47.7 per cent year on year, slower than in 2006.

Imports grew 25 per cent for the last three months of 2007. Trade surplus growth dropped from 69.4 per cent at the end of the third season to 47.7 per cent at the close of year.

A researcher from Chinese Ministry of Commerce said the slower growth was due to government measures to control exports through tariffs while encouraging imports by lowering restraints and easing access to import licences.

Experts expected the situation to last throughout 2008. Wang Tao, a manager at the Bank of America, Greater China Region, estimated that the Chinese trade surplus would be $260 billion this year. Shanghai's Shenyin & Wanguo Securities analyst Li Huiyong predicted that the trade surplus this year would be $29.6 billion with slower growth at 13 per cent.