In the first quarter of this year, imports and exports topped US$371.3 billion, an increase of 25.8 percent from the same period last year, the report said. China has been boasting a continual surge since 2002.

China has increased the export of electronic and high-tech products while reducing products that consume high levels of energy and those that cause pollution.

Last week, Chang Xiaocun, head of the science and technology division with the Ministry of Commerce, said that China has increased imports and exports of high-tech products by 20 percent this year.

"China is facing three major problems with its foreign trade: the country's unbalanced trade; increased interest rates of world economies; and the surging prices of crude oil and other resources," said Liu Haiquan, an official from the Ministry of Commerce.

He emphasized China's surging trade surplus as one of the escalating tensions between China and the United States.

Even though the growth of exports is still 1.8 percent faster than that of imports, export growth was slower in the first quarter of this year, bringing China a trade surplus of US$23.31 billion.

The increasing domestic investment and domestic demand will raise the import of energy sources, raw materials and machinery.

China will also increase the import of advanced technologies and modern equipment to facilitate the exercise of China's innovation strategy. Narrowing the trade surplus is the Ministry of Commerce's top priority this year.

(Source: Shanghai Daily)