Goal is to cut surplus to zero by 2010

The Chinese government says it plans to reduce its huge trade surplus to zero by 2010. To get there, the government says it will trim booming export growth and focus more on “quality growth.” China’s trade surplus during the first eight months of this year hit $95.7 billion, well on track to surpass last year’s record of $101.9 billion.

Rising energy prices and growing trade with China combined to push the U.S. trade gap to a record $69.9 billion in August, reports the Commerce Department.

The trade deficit with China increased to $22 billion from $19.6 billion in July, surpassing the previous high of $20.5 billion in October 2005. Imports from China grew to a record $26.7 billion in August. U.S. exports to China, which had been growing rapidly, fell to $4.8 billion.

Meanwhile, crude oil imports rose to $27.2 billion as the average price per barrel increased to $66.12 from $64.84 in August.