THE United States' trade deficit with China ballooned to US$1.46 billion in March, up $290.2 million from February, quashing hopes that the gap would narrow ahead of the US decision on China's trade status.
President Bill Clinton, who has made it his mission to crank up the ailing American economy, was dealt a blow by the figures released last night, which show the overall US trade deficit at its biggest in nearly four years as the nation's overseas purchases surged to a record.
The Commerce Department said the merchandise trade deficit had widened to $10.2 billion, as the United States imported $49.2 billion worth of goods and exported $39 billion.
The shortfall was 29 per cent larger than February's $7.9 billion, and was the widest since May 1989, with growth spearheaded by demand for foreign oil and cars.
Bucking the trend, the US reported a surplus with Hongkong of $201.4 million, from $154.1 million in February.
With less than two weeks to go before Mr Clinton unveils his decision on China's Most Favoured Nation (MFN) status - over which the administration is understood still to be agonising - the figures are also gloomy reading for Hongkong businessmen.
