| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 Asia Economy


How to use our RSS feed

Follow Finfacts on Twitter

Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.


Finfacts is Ireland's leading business information site and you are in its business news section.


Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News


Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News




Content Management by interactivetools.com.

Asia Economy Last Updated: Apr 12, 2011 - 9:35 AM

China reports first quarterly trade deficit in 7 years; Issues report on claimed US human rights abuses
By Finfacts Team
Apr 11, 2011 - 4:57 AM

Email this article
 Printer friendly page
Chinese Premier Wen Jiabao gestures while holding an online chat with Internet users at two state news portals, Beijing, Feb. 27, 2011.

China on Sunday reported its first quarterly trade deficit in seven years, reflecting surging prices of imported commodities while raising fears that growth may be easing. China also on Sunday issued a report on claimed US human rights' abuses.

Meanwhile, China reported that its currency , the renminbi (RMB), or the yuan, on Monday gained 19 basis points (0.19%) from Friday to hit a record high of 6.5401 against the US dollar. Last  June a 2-year old peg to the US currency was ended, when the rate was 6.83.

On China's foreign exchange spot market, in a managed float, the yuan can rise or fall 0.5% from the central parity rate each trading day. The central parity rate of the RMB against the dollar is based on a weighted average of prices before the opening of the market each business day.

On Sunday, China's General Administration of Customs (GAC) reported a trade deficit of $1.02bn compared with a trade surplus of $13.91bn in the first quarter of last year. It was the first quarterly deficit since Q1 2004.

China's exports increased 26.5% year on year to $399.64bn while imports soared 32.6% to $400.66bn from a year earlier, figures from the GAC showed.

In March, China had a small trade surplus as the trade balance swung to a $139m surplus from a $7.3bn deficit in February.

According to the official news agency, Xinhua, the GAC said China imported more mechanical and electrical equipment, including cars, iron ores and soybeans than it did in the same period a year ago and that the prices of those commodities had all shot up.

China's Spring Festival, or Lunar New Year -- the most important traditional Chinese holiday -- in February, also contributed to the trade deficit, analysts said.

Xinhua said the quarterly numbers signaled that China's trade has struck a basic balance between exports and imports, and its trade policies of stabilizing exports while increasing imports has taken effect, said Li Jian, research fellow from the Chinese Academy of International Trade and Economic Cooperation affiliated with the Ministry of Commerce.

Further, the trade data showed that China's economy was evolving in a more balanced direction, said Zhou Shijian, senior research fellow from the Center for US-China Relations, Tsinghua University.

It also showed that the yuan, was not undervalued and "some countries' allegation of China's currency manipulation can not hold water, said Zhou, adding that China has no intention to pursue a trade surplus."

Also on Sunday, China hit back at US criticism of the recent arrest of the country's most famous artist, Ai Weiwei, who has been critical of the Communist Party, with a report from the State Council, or cabinet, titled, The Human Rights Record of the United States in 2010.

Among the charges are: "90% of US women have suffered some form of sexual discrimination in the workplace; some 20m women are rape victims in the country; One in four women is a victim of domestic violence."

The People's Bank of China is slightly ahead and growth will moderate, says Tai Hui, regional head of economic research, SE Asia at Standard Chartered Bank who expects a sharp rise in inflation figures from China this week:

Russell Jones, global head of fixed income strategy at Westpac Institutional Bank urges caution on China, and expects the RMB to appreciate further:

Related Articles

© Copyright 2011 by Finfacts.com

Top of Page

Asia Economy
Latest Headlines
Chinese premier rules out stimulus as exports slump in March
Developing countries in East Asia to see stable economic growth in 2014
China's manufacturing PMI surveys show sluggish growth in March
Japan's manufacturing sluggish in March after dip in February
China's manufacturing dipped to eight-month low in March
China’s Li Keqiang says future financial defaults ‘unavoidable’
Japan’s major electronics makers agree monthly pay rise of €14 / ¥2,000
China reported trade deficit in February -- impacted by Lunar New Year timing
China's growth target unchanged at 7.5%; Warns Japan as military spending set to rise
China's manufacturing showed more weakness in February; Services PMI rose
Internationalisation of China's renminbi
China's manufacturing contracted in February
China's challenges amidst stunning transformation
Finfacts in China as emerging economies wobble
Japan's services activity eased in January while India's contracted
Emerging markets and US data trigger share selling
Manufacturing growth weak in India, South Korea and Indonesia, in January
Japan's consumer prices up in 2013 - - first time in 5 years; Jobs/ industrial production improves
Chinese manfacturing sector contracted in January
Chinese New Year of the Wood Horse and Finfacts
China should welcome a recession
China's manufacturing sector contracted in January
Swiss inch towards renminbi hub dream
China's economy grew 7.7% year on year in 2013
Revised industrial output fell in Japan in November
Dr Peter Morici: Playing America's strengths to fix economy, correct inequality
China became world's top goods-trading nation in 2013
China's services sector slowed in December; Services in India contracted
China's manufacturing slowed in December; Overcapacity in several sectors
Japan's Nikkei 225 in biggest annual rise since 1972; Manufacturing in December rises at sharpest rate since 2006
Australia facing budget deficits; Tax cuts off agenda for a decade
China's manufacturing activity slowed to a three-month low in December
China's services grew in November but at slower pace
China's manufacturing improved slightly in November; Marginal rises in India, Korea, Indonesia, strong in Taiwan
Japan's inflation at 15-year high in October; Manufacturing improves at fastest pace in 7 years
Japanese households with no financial assets at highest since 1963
China's manufacturing sector slowed in November
Japan's third quarter growth halved at annualised rate
Chinese exports rose 5.6%; Monthly trade surplus doubles
Manufacturing PMI data show rises in October in India, South Korea, Indonesia and Taiwan