A blog on Chinese economy & society

China to see trade deficit in March

leave a comment »

In a forum in Beijing today, Cinese Premier Wen Jiabao spoke against protectionism blah blah blah. The major point to take home, however, is China will see its first trade deficit since 2004 in March, of about USD 8bn.

What does this mean, besides any implication on the currency debate? Well, ever since the beginning of this Great Recession (or GD2, as I would prefer to call it) Chinese exports have been a leading indicator of US consumption. So could this dramatic deficits foretell something more sinister, like a double dip? One month does not a trend make, of course, but this does raise serious alarm, especially in light with all this crazy talk of an official end to recession.


Written by Cindy Luk

March 22, 2010 at 5:56 pm

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: