China has reported a rare monthly trade deficit for the first time since May 2004.
The country's foreign trade was up nearly 43 per cent in March to over $231bn, out of which exports accounted for about $112.1bn and imports about $119.4bn.
In the same month, China's trade surplus was down 4 per cent with the US and over 13 per cent with the EU, compared to March 2009.
Chinese officials have blamed the $7.2bn monthly deficit on the rising volumes and prices of raw materials across the world, such as coal, iron ore, crude oil and copper, that the country has to import to sustain its blistering economic growth.
Even as Chinese imports have surged, exports still remain weak, especially to the Western markets. It may be up to three years before the country's exports reach the levels they were before the global economic crisis, according to some Chinese politicians.
China's monthly trade deficits are likely to continue in the remaining months of the first half of 2010 and will possibly improve in the second half, China's People's Daily said, quoting Yao Jian, spokesman of China's Ministry of Commerce.
In recent months, the Chinese government has come under increasing pressure from the US government for keeping the yuan artificially depressed to help boost its exports.
China's ministry of commerce has cited the latest trade deficit figures to argue that no change is needed in the country's currency regime.
source :newstatesman
In the same month, China's trade surplus was down 4 per cent with the US and over 13 per cent with the EU, compared to March 2009.
Chinese officials have blamed the $7.2bn monthly deficit on the rising volumes and prices of raw materials across the world, such as coal, iron ore, crude oil and copper, that the country has to import to sustain its blistering economic growth.
Even as Chinese imports have surged, exports still remain weak, especially to the Western markets. It may be up to three years before the country's exports reach the levels they were before the global economic crisis, according to some Chinese politicians.
China's monthly trade deficits are likely to continue in the remaining months of the first half of 2010 and will possibly improve in the second half, China's People's Daily said, quoting Yao Jian, spokesman of China's Ministry of Commerce.
In recent months, the Chinese government has come under increasing pressure from the US government for keeping the yuan artificially depressed to help boost its exports.
China's ministry of commerce has cited the latest trade deficit figures to argue that no change is needed in the country's currency regime.
source :newstatesman
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