Trade surplus not worrisome：Chen

The trade surplus for the full year will continue to narrow on the back of steps taken by the government to boost domestic demand and imports, Minister of Commerce Chen Deming said on Tuesday.

The nation will also take steps to increase foreign direct investment (FDI), especially in the high-tech and services sectors, over the next two to three years, Chen told China Daily on the sidelines of the 2010 UNCTAD (United Nations Conference on Trade and Development) World Investment Forum.

"China's trade surplus has been on a decline, and imports are expected to rise on the back of the government policies. The trade surplus for this year will be maintained at a small and controllable level," said Chen.

The monthly trade surplus has been increasing over the last three months as export growth far outpaces that of imports. The surplus for July this year was as high as $28.7 billion, sparking fears that the monthly surplus will hover at around $20 billion for the rest of the year.

The trade surplus dropped to $190 billion in 2009, from $290 billion in 2008. During the first seven months, the surplus was $83.93 billion. But Chen sounded a positive note and said the concerns are unfounded and the annual figures would be smaller than last year.

Huo Jianguo, director of the Chinese Academy of International Trade and Economic Cooperation, said the continuous slowdown in export growth and possible accelerated growth of imports will help largely in achieving the targets. But at the same time, China also needs to be on guard against the growing trade protectionist measures adopted by other nations.