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Trade balance negative for first time in 70 months

12
Apr '10
On the back of a strong Chinese domestic demand in the first quarter of this year, imports exceeded exports. The trade balance situation performed a 360 degree turnaround to enter in to negative territory, for the first time in 70 months.

In March, Chinese import and export value registered US $231.46 billion, of which exports were $112.11 billion and imports $119.35 billion. This resulted in China's foreign trade depicting a deficit of $7.24 billion in March.

Minister of Commerce, Chen Deming said that the deficit in March indicates that China's trade is now very open and free. China's foreign trade faces many uncertainties this year, such as rising prices of imported goods and bulk raw materials. Surplus

Especially major U.S. and European markets are still weak with high unemployment and low savings rate, which will create a great deal of difficulties and stress to China's exports, which are expected to continue even in 2010.

Chen Deming said that trade is ultimately decided by market and each country's open-door policy and is no way, directly related to the exchange rate.

A official of the National Development and Reform Commission said that a single month's data alone cannot create a impact on the future, as 2004 witnessed deficit for four consecutive months, however it registered a surplus for the year as a whole.

At present, China's economic dependence on exports has declined from 37 percent in 2006 to the current 24 percent, while China's imports showed a strong growth in the first quarter, in the process, boosting imports by more than $100 billion.

In the first two months of this year, exports from the United States, Europe, and Japan to China were up 37 percent, 35 percent and 48 percent, respectively.

Secretary of Statistics Department of General Administration of Customs, Cheng Yue Sheng said, with greater demand for imports than exports, trade surplus will gradually reduce its scale, foreign trade will be more balanced.

Yao Jian, Spokesman, Ministry of Commerce said, China's trade balance continues to improve and trade surplus of the year is expected to sharply decline further on the basis of already narrowed surplus last year.

Fibre2fashion News Desk - China


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