China's trade surplus will hit 254 billion U.S. dollars in 2007, a 42.8 percent year-on-year increase, but the rate of growth will begin to slow.

The gap between imports and exports should narrow this year, according to a study by the Center for Forecasting Science of the Chinese Academy of Sciences.

Export volume is expected to reach 1.2 trillion dollars, up 23.7 percent from last year, while imports rise to 945.6 billion dollars, an increase of 19.5 percent.

The research center made the forecast based on analysis of world and domestic economies, as well as custom data released at the end of March.

The trade surplus between China and the United States will surge 23.5 percent, according to the report. Total exports to the U.S. will reach 263.6 billion dollars, a 29.8 percent increase. China will import 71 billion dollars from the U.S., up 18.9 percent from 2006.

The trade surplus between China and EU will increase nearly 45 percent to a total volume of 128.7 billion dollars. Exports to the European market will increase 33.1 percent to 239.3 billion dollars, while imports to China rise 22 percent to 110.6 billion dollars.

The trade surplus in the hi-tech sector is expected to double in 2007 to $66.9 billion, the report said. Hi-tech exports will increase 29.2 percent to 363.6 billion dollars, and China will import 296.7 billion dollars of hi-tech products, up 20 percent.

The report estimates China will export 736.7 billion dollars worth of machinery and electronic products, up 34.1 percent, and import 510 billion dollars, an increase of 19.2 percent.

Clothing exports will reach 107.9 billion dollars, up 15.8 percent, while the total textile export volume will increase 13.3 percent to 55.3 billion dollars.

In the energy sector, the rate of increase of crude and refined oil imports is expected to slow, while imports of iron ore will increase at a faster pace.

China is expected to import 69.6 billion dollars of crude oil in 2007, up 4.8 percent, while imports of refined oil reach 15.8 billion dollars, up 1.6 percent. Iron ore imports will reach 30.7 billion dollars, up 47 percent.