China's trade surplus with India set to cross $4 bn

China's trade surplus with India is set to cross the $4 billion mark this year enabling the Communist trading giant to enjoy a favourable trade balance for the first time in Sino-Indian bilateral trade.

According to latest available Chinese customs statistics, the total trade during first 11 months of 2006 (January to November) was $22.38 billion.

Indian exports to China during the period amounted to $9.40 billion while Indian imports from China surged to $12.98 billion, allowing China to enjoy a trade surplus of $3.58 billion.

With trade figure for December, 2006 yet to be released, industry sources said China's trade surplus with India is set to cross $4 billion.

China is enjoying a trade surplus with India for the

first time in history. Analysts say the trade imbalance is mainly due to dwindling Chinese import of iron ore from India while growing demand for Chinese goods from India.

Meanwhile, China will continue to face trade frictions with both developed and developing nations in 2007 despite the government's efforts to balance foreign trade, a government think-tank has forecast.

China's exports will rise steadily and rapidly, notably in sectors such as textiles and televisions sets where the country is highly competitive despite a slow-down in the long term, a report by the Chinese Academy of Sciences said.

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