China reports first trade deficit in 11 months

BEIJING: China reported a large trade deficit in February mainly due to distortion by the Chinese New Year holidays, marking the first deficit since April 2013.

Last month, the trade deficit stood at US $ 22.98 billion, compared with a surplus of US $ 14.8 billion last February and US $ 31.86 billion this January, the General Administration of Customs (GAC) said in a statement today. Total trade dropped by 4.8 per cent year on year to US $ 251.18 billion, with exports falling 18.1 per cent and imports up 10.1 per cent.

In January, foreign trade climbed 10.3 per cent, with exports rising 10.6 per cent and imports up by 10 per cent. "The Spring Festival factor contributed to large fluctuations in trade volume and the deficit last month," the GAC said. The Spring Festival, or China's lunar new year, is the country's most important traditional festival for family reunions.

Trade with the European Union, China's largest trade partner, rose 6.3 per cent to 551.99 billion yuan (US $ 90.19 billion) in the first two months, while that with the United States, its second-biggest trade partner, rose 4.8 per cent to US $ 499.05 billion yuan. The dramatic fluctuation in the monthly trade figure has caused some concerns about the health of the trade sector, state run Xinhua news agency reported.