China reported a surprising trade deficit in February after imports jump marks. The exports grew by 4.2% yoy, while imports jumped by 44.7%. For comparison, in January the exports rose by 15.9%, while imports rose by 25.2%. Thus the unusual record deficit of 60.36 billion CNY, which happens for the first time since February 2014. In January there was a record surplus of 354.53 billion CNY.
The trade balance in dollar dimensions, which is monitored by most analysts, will be published later on Wednesday.
According to many experts, the data from January and February may have been distorted somewhat because of the weekend to celebrate the Lunar New Year, which lasts a week.
This largely reflects the growth in the value of imports, resulting from the appreciation of raw materials. Furthermore, suggests that domestic demand remains resilient. Looking forward, the external demand will remain relatively strong in the coming quarters, which should continue to support exports.
Chinese exports to the US grew by 11.5% yoy in February, while imports from the US increased by 41%.