China, in 2007, will strive to reduce its bulging trade surplus to ensure the sustained development of its economy and foreign trade, senior Chinese leaders today assured the Communist trading giant's major trading partners, including India.

"We must optimise the mix of imports and exports, change the pattern of China's foreign trade growth and strive to reduce our excessively large trade surplus," Chinese Premier Wen Jiabao said at the annual full session of the National People's Congress, China's parliament.

China recorded a sizzling economic growth of 10.7 per cent in 2006, largely powered by strong exports, which rose 33 per cent to $86.62 billion.

Despite a slight 1.2 percentage points down in export growth and 2.4 percentage points up in import growth, China's trade surplus last year grew to a record $177.5 billion, up 74 per cent from the previous record of $101.9 billion set in 2005.

The surplus kept surging 67.3 per cent in January from a year ago to $15.88 billion, a dangerous level to ignite inflation and aggravating already tense trading relations between the world's fourth largest economy and its major trade partners, which press China for further currency appreciation.

For example, India has emerged as China's 10th largest trading partner. In 2006, bilateral trade touched a record $ 25.05 billion, up 33.87 per cent over 2005.

However, China enjoyed a record trade surplus of $4.11 billion last year compared to India's $843 million in 2005.