China posts a surprise trade deficit as exports slow

Discussion in 'Economics' started by abattia, Mar 10, 2011.

  1. china's going to inflate their export prices

    China records $7.3bn trade deficit

    China’s trade balance swung to a deficit of $7.3bn in February as exports slowed during the Lunar New Year holidays.

    Although China is often criticised by US politicians for running a large trade surplus, this is the second time in the past 12 months that Chinese data have revealed imports outstripping exports. As the world’s largest consumer of commodities, China’s imports have ballooned in value as prices for raw materials rise.

    High prices of commodities such as iron ore and oil – which together accounted for more than $21bn of China’s imports last month – also play a big role in tipping the trade balance toward imports. In terms of volume, China’s imports of these commodities were relatively weak in February, but in value terms the imports still soared.