Chinese Commerce Minister Bo Xilai has recently said that China is in process to formulate a range of policies that are aimed at limiting its huge trade surplus. However, he further indicated that an overnight change in this direction is not possible. He further stated that China is willing to pursue reasonably balanced trade, and that the measures will be aimed at tightening Chinese macro economy. China’s trade surplus shot up nine-fold in February from a year earlier as exports rose by the most in 12 years, and it provided another platform to boost efforts by US lawmakers and particularly Democrats to push for revaluation of the Chinese currency. In the meanwhile, Chinese government has vehemently opposed the proposal of a 27.5 percent tariff on all imports from China suggested by some US senators on the ground that such imposition would violate rules of the World Trade Organization. Reacting on the issue, Bo Xilai has said, ‘the tariff will ruin the development of Sino-US trades and will demolish the win-win situation between the two countries’ merchants’. Some US lawmakers had suggested levying a 27.5 percent tariff on Chinese goods and called for a cancellation of China’s most-favored national clause, which provides it preferential policies as a developing country. U.S. Senators blame Chinese imports, which led to a $232.5 billion trade deficit with China last year, for a loss of American manufacturing jobs. However, China has stated that it prefers to resort to consultation for settlement of trade friction with its trade partners rather than to the World Trade Organization (WTO). Chinese Minister of Commerce has said, ‘It is a normal practice to solve some trade frictions within the framework of the WTO mechanism for dealing with trade disputes. But for problems with trade partners with good relations, we prefer consultations’. China’s growing surplus, which touched $177.5 billion last year, is the main bone of contention between it and some of its trading partners, particularly the U.S., which has persistently called on Beijing to let its currency rise more quickly in value to ease the trade imbalances.