China’s export-dependent economy is likely to experience a trade deficit this month, a senior government official warned yesterday, possibly signaling a slowdown in overseas shipments.
Chinese Commerce Minister Chen Deming’s (陳德銘) remarks at the closed-door China Development Forum in the capital, published by Xinhua news agency and the People’s Daily newspaper, come amid growing international pressure for the yuan to appreciate.
Analysts have warned of a temporary slump in exports this month after manufacturers cranked up production before China’s Lunar New Year holiday last month to meet overseas orders for the Easter holiday next month.
China’s exports soared 45.7 percent last month, its fastest pace in three years, continuing a rebound that started in December when exports grew 17.7 percent and snapped a 13-month falling streak.
The nation’s trade surplus reached US$7.61 billion last month, up 57.2 percent year-on-year, while imports rose 44.7 percent year-on-year to US$86.9 billion.
The turnaround in exports has intensified pressure on Beijing to let the yuan — effectively pegged to the US dollar since mid-2008 — appreciate. The US and EU, key trade partners for China, say Beijing has intentionally kept the currency low to boost its exports, vital to the country’s emergence from the global economic crisis.
China has tried to play down expectations for a strong pickup in exports, however, with Chen saying it could take up to three years to return to pre-financial crisis levels.
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