Caixin: China Posts First Trade Deficit in Three Years

Political rhetoric blasting global trade from the United States and other countries may slow economic growth in the world’s second largest economy. “China recorded its first trade deficit in three years last month as imports surged on soaring commodity prices while exports declined, likely adding uncertainty to the country’s growth prospects,” reports a team from Caixin. “The surprisingly robust rebound in imports may prove short-lived, while the disappointing performance of exports suggested that foreign demand remained slack, with rising anti-globalization led by U.S. President Donald Trump casting a pall on the outlook of Chinese overseas shipments, analysts said.” The increase in imports may decline, too, as the country struggles with economic reforms, an overpriced property market, sluggish private investment, inflation as well as currency outflows. China has a trade surplus with the United States for January and February, though the writers report that declined 12 percent from the same period in 2016. – YaleGlobal