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Bilateral trade between China and the United States increased dramatically in 2006, when China for the first time surpassed Mexico to become the second-largest trading partner of the US.

Trade volume between the two countries reached $238.7 billion in 2006, an increase of 24.6 percent from 2005.

China imported goods worth $53.94 billion from the US, up 22.9 percent year-on-year, and exported $184.76 billion, 25.1 percent more than last year. China achieved a trade surplus of $130.8 billion, a 26 percent increase.

The US is now China's second-largest trade partner, biggest export market, sixth-largest import market and third-largest technology import market.

While the US remains a major source of foreign investment to China, investment decreased in 2006. From January to October, the US invested in 2,529 projects, down 15.54 percent from the year before.

Contracted investment was $9.24 billion, a reduction of 11 percent from the previous year. Total actual investment volume was $2.11 billion, a 13.21 percent decrease from 2005.

As investment from the US has decreased, the investment from China to the US is increasing. By the end of June, China's total investment in the US reached $82.3 billion.

The year 2006 has seen frequent high-level visits and dialog between the two countries. President Hu Jintao visited US in April to promote Sino-US cooperation.

The author is director of the Department of American and Oceanian Affairs under the Ministry of Commerce .

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