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| China posts a surprise trade deficit as exports slow | China posts a surprise trade deficit as exports slow |
| (40 minutes later) | |
| China has reported a surprise trade deficit in February after exports slowed. | |
| Shipments grew at a weaker-than-expected 2.4% in February from the same month a year ago, latest figures show. | Shipments grew at a weaker-than-expected 2.4% in February from the same month a year ago, latest figures show. |
| Imports on the other hand increased by 19.4%, resulting in a trade deficit of $7.3bn (£4.5bn). | Imports on the other hand increased by 19.4%, resulting in a trade deficit of $7.3bn (£4.5bn). |
| The news comes at a time when China has been facing criticism over its export-led growth policy. | The news comes at a time when China has been facing criticism over its export-led growth policy. |
| Easing pressure | |
| The US has led criticism of China, claiming it keeps the value of its currency, the yuan, artificially low so that it can boost foreign sales. | |
| A weaker currency makes Chinese goods more affordable, giving the country's exporters an advantage over many competitors. | |
| In recent years there have been repeated calls for China to let its currency appreciate against the US dollar. | |
| Analysts say February's surprise deficit numbers may ease that pressure. | |
| "A trade deficit offers relief to the international trade imbalance, and it may help to reduce pressure on the yuan to appreciate," said Wang Jianhui of Southwest Securities. | |
| Mr Wang also said that as China works towards rebalancing its trade and increasing domestic demand, the slowdown in exports could continue in coming months. | |
| "The Chinese government will be happy to see a modest trade deficit for a while," Mr Wang said. |