Shanghai posts trade deficit of US$3.1 bln
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Shanghai posted a trade deficit of US$3.1 billion in March, the first time in six years as a surge in imports overshadowed a jump in exports.
According to the Shanghai Statistics Bureau yesterday, the city's imports soared 72.4 percent to US$16.6 billion last month while exports rose 27.1 percent from a year earlier to US$13.5 billion last month.
The trade gap, a rarity in recent history, occurred on the heels of a similar experience suffered by China which reported its first trade deficit of US$7.2 billion in March since May 2004.
"A trade deficit may be short-lived. But it sends a clear signal to policy makers to take careful steps in steering the economy," said Xue Jun, an analyst at CITIC Securities Co.
Last month, Shanghai imported mechanical and electrical equipment worth US$9.6 billion, a surge of 69.8 percent from a year earlier. The imports of high-tech products also jumped 57.2 percent to US$5.9 billion.
While exports to the European Union rose 20.6 percent to US$3.2 billion, imports from the EU soared 72.2 percent to US$3.1 billion, making the EU the biggest trading partner of the city.
Exports to the United States rose 11.3 percent to US$2.7 billion while imports more than doubled to US$1.9 billion.
China is under increasing pressure from the US to appreciate the yuan.
"A sharp rise in the currency value will deal a heavy blow to Chinese exporters, and it does no good to US consumers and manufacturers as well because industries affected will relocate to other developing countries which can offer low production costs," Xue said.
The city's Business Climate Index settled at 136.2 in the first three months, helping push up the Business Confidence Index to 134.5, the bureau said. Readings between 120 and 150 refer to being "relatively positive."
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