CHINA'S trade returned to surplus in April but shrank 87 percent from a year earlier due to faster growth in imports than exports.

The trade surplus stood at US$1.68 billion last month, the General Administration of Customs said yesterday as it released figures that were yet another indication that the nation is in the economic fast lane.

This compares with a deficit of US$7.2 billion in March, which ended a run of trade surpluses since May of 2004.

Exports rose 30.5 percent year on year to US$119.92 billion in April, while imports surged 49.7 percent to US$118.24 billion.

"It is no surprise that China has reported a trade surplus again," said Li Maoyu, an analyst at the Changjiang Securities Co. "A deficit is only a temporary occurrence - the country is still strong in exports."

However, the swift return to surplus may spark more requests from the United States for the yuan to appreciate, Li said.

"The US economy is still burdened with difficulties and they are hoping to count on exports to boost the economy," Li said. "China may face renewed pressure from the US for a rise in the yuan's value."

The State Information Center, a unit under the National Development and Reform Commission, suggested China could widen the yuan's daily trading band.

"China should increase the flexibility of its currency valuation system before the influx of huge amounts of speculative money," the center said last week in a report.

It predicted China's trade would continue a trend of recovery in the second quarter, with exports advancing 25 percent and imports surging 35 percent based on better global economic conditions and a low comparative base last year.

But there is uncertainty in global trade, according to analysts.

"A negative effect of the stimulus packages provided by central governments during the global financial crisis has started to emerge, for example, the debt crisis in Greece," said Xue Jun, a CITIC Securities Co analyst. "This will restrict global demand to some extent. Also, the political demand to revive economies in countries like the US has led to a growing trend of trade protectionism."

China underwent 19 trade inquiries in the first quarter, up 93 percent over the same period of last year and involving US$1.19 billion, said the Commerce Ministry.

In the first four months, exports expanded 29.2 percent to US$436 billion, and imports ballooned 60.1 percent to US$419.9 billion.

The trade surplus thus plunged 78.6 percent from a year earlier to US$16.1 billion through April.

The European Union remained China's largest trading partner, with bilateral trade climbing 34.6 percent to US$137.7 billion during the period.

Shanghai's exports in the first four months of this year increased 27.1 percent from a year earlierto US$52.4 billion.