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China posts first monthly trade deficit
in 3 years as imports soar
INTERNATION NEWS- China unexpectedly posted its first trade gap in
three years in February as a construction boom pushed imports much
higher than expected and as increasing US protectionist rhetoric casts a
spotlight on the export giant's trade position.
The upbeat import reading reinforced the growing view that economic
activity in China picked up in the first two months of the year, adding to a
global manufacturing revival.
That could give China's policymakers more confidence to press ahead this
year with oft-delayed and painful structural reforms such as tackling a
rapid build-up in debt.
"We suspect that this largely reflects the boost to import values from the
recent jump in commodity price inflation, but it also suggests that domestic
demand remains resilient," Julian Evans-Pritchard at Capital Economics
said in a note.
The surprise monthly deficit also comes as US President Donald Trump
focuses increased attention on China's large and persistent run on trade
surpluses with the US and as global efforts to ward off trade protectionism
face growing difficulties.
China imports surged 38.1 per cent from a year earlier, the biggest
increase since February 2012, official data showed on Wednesday, while
exports unexpectedly fell 1.3 per cent.
That left the country with a trade deficit of $9.15 billion for the month, the
General Administration of Customs said.
Most analysts, however, attributed the rare trade gap to distortions caused
by the long Lunar New Year celebrations, which began in late January this
year but fell in February in 2016. Many businesses shut for a week or more
and factory production and port operations can be significantly affected.
ARTICLE SOURCE – BUSIENSS STANDARD