Oliva Chung at the Asia Times Online writes:

The world has been astonished by China's fast-growing trade surplus. China's major trade partners, the United States and the European Union in particular, have been pressing Beijing to reduce the surplus by revaluing its currency, the yuan. Finding ways to dispose of the country's mammoth foreign-exchange reserve has become an increasing challenge for Beijing.

However, Li Deshui, the outspoken former chief of the National Bureau of Statistics (NBS), recently remarked that a considerable part of China's trade surplus is not real, but in fact comes from "fake" exports by enterprises that fraudulently obtain export rebates from the government. Hence, he argued, the yuan's appreciation may not effectively curb the growth of the trade surplus, and it is more important for the government to strengthen its management and supervision of foreign trade.

To read more:

http://www.atimes.com/atimes/China_Business/IA30Cb02.html