The Guardian

Soaring commodity prices push China’s trade balance into the red
The Guardian

The commodities boom has pushed China’s trade balance into the red for the first time since 2004.

Official figures released on Sunday show that the world’s biggest exporter posted a trade deficit of just over $1bn for the first three months of the year.

Surging prices for commodities – as well as strong demand for imported consumer goods such as cars for China’s growing middle classes – were responsible for pushing up the country’s import bill. « The value of imports in the first quarter hit a record high for the first time of more than $400bn, » the government said.

It added that China had imported more mechanical and electrical equipment, including cars, as well as iron ore and soya beans than a year ago and that the prices of those commodities had all soared.