Though domestic demand waned and imports slackened in the first half, due largely to macro-economic controls, it is totally wrong to consider the Chinese Government influenced foreign trade with administrative instruments.

By contrast, China's domestic market was oversupplied generally, compelling traders to turn to international markets and thus boosting export.

The gains in imports are a sign of strong domestic demand and show how resilient the economy is now. With growth in the U.S. and other export markets set to accelerate, exports will be strong for some time.

The sharp slowing in domestic demand has dramatically reduced imports. Weakening economic activity in our major trading partners has significantly reduced the foreign demand for American-made products.

There is little probability that the trade surplus this year will exceed the 2005 level.

Currently, import is totally businesses' activity. There has been almost no room for the Government to intervene by administrative means after China entered the World Trade Organization . Along with a recovery in investment at home, China's trade surplus in 2006 will probably be lower than the estimated 90 billion US dollars for the current year.