China appeared huge trade deficits

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China's February unexpectedly appear huge trade deficit. The distortion of the seasonal, rising raw material, and Europe and other countries economic growth weakness, may is the main reason. Analysts have said, the trade deficit for the Chinese is not a good thing.

 

China's customs administration of import and export trade figures published on Saturday showed China's import and export value in February 260.43 billion us dollars, up 29.4%, including export $114.47 billion, up 18.4%, imports $145.96 billion, a 39.6% increase. Previously, imports fell 15.3% in January.

 

China on February global trade deficit this year to us $31.5 billion, January trade surplus for 27.28 billion dollars. The Associated Press and bloomberg news agency said, this is the 1990 s China's largest monthly performance trade deficit.

 

Export demand weakened

 

The Associated Press said, in the European debt crisis and the weak economic recovery, the trade deficit show that China's relatively strong growth. China's economy in the last quarter of 2011 increased by 8.9%. China this year is expected to economic growth target of 7.5%.

 

China's trade deficit in February and is at a record high of 20 years, on the one hand, by seasonal factors influence, on the other hand show that export demand weakened. China said the general administration of customs, the Spring Festival is February exports reduce main reasons. The financial times that the February import and export data may distort too big, but unfavorable interpretation isolated, because this volatility is purely the result of the Spring Festival holiday.

 

The Associated Press said, vacation, the factory will again replenishment, so it appeared the trade deficit, but rarely appears like this February so large trade deficit. Last month the only trade deficit is February of 7.3 billion us dollars, but in the same year in July trade surplus has reached a record $31.5 billion.

 

Because of China's export enterprise overseas orders fell, China's oil and commodities such as iron ore demand while decreased, but the soaring cost of raw materials, lead to the international trade balance into deficit. The general administration of customs data shows that China's imports of oil in February to a record 23.64 million tons, oil and iron ore imports more than $21 billion.

The Wall Street journal reported, nomura securities economist ZhangZhiWei said, from the global perspective, the economy is rapidly abate, slow speed faster than the government is expected to. He said China's large trade deficit, especially with the effect of a weak exports, eu and other countries may be the demand for Chinese goods in decline.

 

China's customs administration said, after seasonal adjustment, after the February of import and export year-on-year growth of 7%, 4% export, import 9.4%.

 

Perhaps is a good thing

 

Beijing army economic think-tank consulting company researchers ZhongDaJun said, in China's total import and export volume growth, increasing imports, appear certain trade deficit, for the Chinese, not is not a good thing.

 

He said: "a country in successive years of a lot of cheap export, the resources, the stuff is let others consumption, wealth is to go abroad. And its ecological and environmental damage, and pollution in China. So a trade deficit is too good, good....... It is in the process of Chinese in the adjustment of the phenomenon."

 

ZhongDaJun said, China is not a big country what resources, the rapid growth of economy in all these years, oil, food, lumber needs to be imported. He said China should discard mercantilism, breakfast more foreign imports of some resources to meet their domestic demand.

 

Bloomberg news agency, the China import and export trade data published on Saturday, released Friday and a series of disappointing economic data, including lower than expected retail sales of industrial output and, increased China will relax credit, support growth may. Chinese commerce minister Chen deming said, import and export trade increases this year to 10% of the target will be very difficult.

 

Nomura securities greater China's chief economist ShenJianGuang said, inflation pressure is slow, economic activity is abate, issued the China in the next few months will further relax credit strong signal. He predicts that China will in March down further Banks' reserve fund rate. This will be for the past four months to third cut.

 

 

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