Beijing: With the global economy picking up, China's foreign trade this year is forecast to reach a record one trillion US Dollars, up 17 per cent on a year-on-year base, according to an official forecast.

The Chinese Ministry of Commerce and International Trade and Economic Cooperation Institution predicted that the country's export will reach $ 505 billion, up 15 per cent, while imports will be $ 495 billion, up 20 per cent.

The report said that there are rooms for rapid development for the country's export, as world economy is expected to keep a rapid momentum. The World Trade Organisation predicted a 7.5 per cent of growth rate in world trade volume this year, three percentage points higher than in 2003.

Besides, the problem of tariff refund for export companies has been solved, easing their fund strain, an official with the Ministry said.

However, complicated international situation also poses potential threat, such as the foreign exchange fluctuation for major currencies, high price of oil and the shadow of terrorism.

The price increase of upstream products domestically will also lag the export behind to some extent.

Driven by domestic investment demand, China's import will run on a high level this year, said the report, noting that the growth rate for import will be decided by the development of domestic investment and the situation of macro-economic readjustment.