China posts 1st quarterly trade deficit since 2004

[Keith Bee]

Source: MSNBC.com

BEIJING — 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 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 percent to $399.64 billion compared to a year earlier, but imports soared 32.6 percent 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. 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.

Read more: http://www.msnbc.msn.com/id/42515917/ns/business-world_business/

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How the Hell did that happen? Jeez, I...I almost feel like apologizing!

[Ikonoklast]

1. China is setting itself up for a huge problem.

If they fail to develop internal markets for their own manufacturers (by increasing worker's wages and disposable income) their current economic model is due to fail.

[high density]

2. The US economy is a preview

A bunch of companies that want workers to buy an infinite number of things while paying them wages that amount to nothing.