China's politically sensitive trade surplus soared in May to the third-highest monthly level on record, according to government figures released Monday, amid growing pressure from United States lawmakers for sanctions against Beijing.

The surplus hit US$22.5 billion (€16.9 billion), up 73 per cent from last May, the Chinese customs agency said on its website.

Exports jumped 28.7 per cent to US$94 billion (€70 billion), while imports rose 19.1 per cent to US$71.6 billion (€53.6 billion).

China has promised to narrow its yawning trade gap under pressure from Washington and other governments, but economists say multibillion-dollar surpluses are likely to continue.

The United States wants Beijing to raise the value of its currency, the yuan, which critics say is undervalued, giving Chinese exporters an unfair advantage. Several American lawmakers are calling for punitive tariffs on Chinese goods if Beijing fails to act.

Senior American and Chinese envoys met last month for the second round of a high-level dialogue meant to address trade disputes. But they have failed to defuse tensions with the U.S. Congress, where lawmakers say support for trade penalties is growing.

Billion-dollar trade deficit

The United States reported a US$232.5 billion trade deficit with China in 2006, and this year's figure is expected to surpass that.

President Hu Jintao's government insists it isn't actively seeking a trade surplus and is taking steps to rein in booming exports by imposing taxes on steel shipments and repealing export rebates.

China ended the yuan's direct link to the U.S. dollar in July 2005 and raised its value by 2.1 per cent. Since then, the yuan has been allowed to rise by about 5.7 per cent in tightly controlled trading.

It has trading recently atabout 7.65 to the dollar. Many economists say a change in the yuan's exchange rate on its own is unlikely to close the U.S. trade gap.

The European Union was China's biggest trading partner in the first five months of the year, with total two-way commerce rising 29 per cent to US$129.9 billion, according to the customs agency.

It gave no breakdown of imports and exports.

The United States was in second place, with two-way trade rising 18.2 per cent to US$115.2 billion from January to May, the agency said. Japan was No. 3, with trade up 15.5 per cent at US$91.2 billion.

The World Bank and other experts say this year's trade surplus could top US$250 billion.

The May surplus was just below the all-time monthly high of US$23.8 billion reported last October. The government reported a US$23.7 billion surplus in February, but experts said that figure was swelled by exporters shipping goods early to beat a change in taxes that was expected to occur in March.

The March surplus was just US$6.9 billion.

AP