Chinese textile exports have risen sharply since the start of the year

The Commerce Ministry said the surplus would be created by a predicted 30% jump in exports to $750bn, compared with a 18% rise in imports to $660bn.

The figures are likely to further annoy the US, which has long argued that China's exports are unfairly helped by a deliberately undervalued yuan.

Beijing agrees the surplus is too high, but says the yuan is only one factor.

Domestic factor

Bank of China governor Zhou Xiaochuan said the country also needed to do more to boost domestic demand so more goods stayed within the country.

The low value of the yuan has come in for strong criticism from the US

"In the major global economies, the influence of domestic consumption on the trade balance is far greater than that of foreign exchange rate adjustments," he told Chinese financial magazine Caijing.

"This is the situation in Japan, as well as the US."

China increased the value of the yuan against the dollar by 2.1% in July and permitted it to trade within a narrow band, but the US wants the yuan to be allowed to trade freely.

However, Beijing has made it clear that it will take its time and tread carefully before allowing the yuan to rise further in value.

Clothing boom

Chinese exports have particularly been driven this year by textiles and clothing items.

Exports of such goods have shot up since the start of 2005, due to the ending of long-held global production level agreements.

By August this saw Chinese clothing pile up at European ports after exceeding the EU's import quotas for the whole year.