China posts rare trade deficit

Extrait de: China posts rare trade deficit ,BEIJING— The Associated Press , The Globe and Mail, Sunday, Apr. 10, 2011

China reported its first quarterly trade deficit since 2004 on Sunday as surging prices for commodities pushed up its import bill.

The General Administration of Customs said in an online statement that China posted a trade deficit of $1.02-billion (U.S.) from January to March this year.

However, China reported a small trade surplus of $140-million in March, up from a deficit of $7.3-billion the month before, it said.

Export growth in the first quarter was strong, it said, increasing 26.5 per cent to $399.64-billion compared to a year earlier, but imports soared 32.6 per cent during that period, to $400.66-billion.

“The value of imports in the first quarter hit a record high for the first time of more than $400-billion,” the administration said.

It said China imported more mechanical and electrical equipment, including cars, as well as iron ore and soybeans, than it did a year ago and that the prices of those commodities had all shot up.

Analysts expect a Chinese global trade surplus this year of $160-billion to $200-billion but say that should narrow if oil and commodity prices stay high. Last year, China ran a trade surplus of about $16-billion a month.

A smaller trade surplus might help to ease trade strains with Washington and other governments that complain Beijing is giving its exporters an unfair advantage with currency controls and other policies.

Stronger imports could help economies looking to China's robust growth to drive demand for their goods. Imports also might benefit from ongoing government efforts to boost consumer spending to reduce reliance on exports and investment.

China is a major importer of oil, iron ore and raw materials and runs a deficit with suppliers such as Saudi Arabia and Australia. It pays for that by running multibillion-dollar surpluses with the United States and Europe.

Les blogueurs :

Sweeney Todd: 10:16 AM on April 10, 2011

What this really means, is that the material input costs for China's manufacturing has jumped. These cost increases WILL be passed-on to their customers. That would be us.

The head honcho of Wal-Mart stated the same thing recently when he said "get ready for some BIG price increases". China's trade deficit is about to show-up, on store shelves right here.

The Fed, along with other central banks, have been printing reams of fiat money - backed by NOTHING - for years now. All that that paper has accomplished, is to drive the cost of everything higher.

Everybody should buckle-up, because this is going to be a wild ride...