China posts rare $1bn trade deficit
Monday 11 April 2011
China recorded its first quarterly trade deficit since 2004 in the first quarter of this year as domestic growth and rising global commodity prices pushed import costs higher than export values.
Between January and March, China imported $1bn (£611m) more than it exported, compared with the whopping $13bn trade surplus recorded in the same period of 2010, according to the General Administration of Customs. Imports rose by 33 per cent to $401bn, while experts were up by 27 per cent at $400bn.
The surplus is unlikely to continue into the next quarter, but this year's overall total will be lower than in 2010, the Chinese government said.
Economists welcomed the development as a sign of rebalancing in the global economy, which has been tilted by China holding down its currency, hoarding dollars and flooding international markets with cheap exports.
Although China has resisted calls from the US to allow the yuan to appreciate, rising costs – including soaring prices for commodities such iron ore as well as foodstuff such as soybeans – have helped push real appreciation up faster than the gradual nominal route adopted by Beijing.
China raised interest rates for the fourth time in six months last week in an effort to hold down inflation.
Children's bookseller wins The Independent's new author search
Board creates magnetic field to achieve lift
Company reveals $542m investment in start-up building 'a rocket ship for the mind'
- 1 Jack the Ripper: Scientist who claims to have identified notorious killer has 'made serious DNA error'
- 2 Banksy arrest hoax: Internet duped by fake online report claiming artist's identity has been revealed
- 3 Former East 17 frontman Brian Harvey turns up at Downing Street and 'demands to speak to Prime Minister'
- 4 The inventor of the Facebook 'like' button says he never made a 'dislike' button because he feared the 'unfortunate consequences'
- 5 Russell Brand threatened with arrest after filming outside Fox News headquarters
Jack the Ripper: Scientist who claims to have identified notorious killer has 'made serious DNA error'
Oscar de la Renta dead: Legendary US fashion designer dies after long cancer battle aged 82
Oscar Pistorius: The brutal prison life that awaits disgraced athlete
Banksy arrest hoax: Internet duped by fake online report claiming artist's identity has been revealed
Super-sized ships arrive in Britain: How big can they get?
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
London bus driver 'kicks gay couple off for kissing'
Lord Freud: Tory welfare minister apologises after saying disabled people are 'not worth’ the minimum wage
Lord Freud hangs on as MPs of all parties 'call for his head' over disability comments
iJobs Money & Business
£23000 per annum + pension and 22 days holiday: Ashdown Group: An established ...
£27000 per annum + pension, 22 days holiday: Ashdown Group: An established ind...
£23000 - £26000 Per Annum: Clearwater People Solutions Ltd: Our client is curr...
£25 - 30k: Guru Careers: A Corporate Actions Administrator / Operations Admini...