China reported a record trade surplus today but affirmed its policy of keeping the yuan steady.
China's surplus swelled to $12 billion last month, up from $7.1 billion a year earlier and rebounding much more strongly than expected from a swoon in September, the customs office said.
The figures came out a day after Mr Bush described the big US trade deficit with China as "bothersome" and said he would urge China to make more progress towards a market-driven exchange rate.
But the central bank said currency changes alone would not put the balance of payments on an even keel.
Mr Bush will visit Beijing at the end of next week.
Qu Hongbin, an economist with HSBC in Hong Kong, said the surplus was likely to increase pressure for a further rise in the yuan following July's landmark 2.1 per cent revaluation.
The trade surplus takes the accumulated total for the first ten months to $80.4 billion, compared with $32 billion for the whole of 2004. The United States accounts for about a quarter of the surplus.
China says it shares Mr Bush's goal of currency flexibility but, craving stability, says it will take its time about getting there so the economy has time to adjust.