China's trade surplus rose to a record $18.8 billion (€14.8 billion) in August, from $14.6 billion in July, following a 32.8 per cent increase in the value of China's exports. The news will increase pressure on Chinese authorities to allow the yuan to rise faster.

Following a signal towards a more flexible exchange rate regime, China's central bank has allowed the country's currency to rise gradually against those of its main competitors, but analysts say the yuan remains below levels consistent with rising demand for its exports.

Analysts predicted pressure would emerge from the US at next week's meeting of the International Monetary Fund (IMF). "The IMF meeting in Singapore will have more teeth in terms of levying pressure on the Chinese currency," LBS chief economist Chris Leung said yesterday.

US treasury secretary Henry Paulson called on Chinese and other east Asian economies to help US exports to Asia by permitting greater flexibility in the upward movement of their currencies. Mr Paulson is expected to repeat the call at the IMF talks.

China's finance minister, Jin Renqing, denied any responsibility for the growing gap between US imports and exports in its trade with Asia. "The G7 has recently been toning down the pressure on China, because they know that playing hardball is not going to work with China," Mr Yau said yesterday.