China will probably run a monthly trade deficit in March, its first in six years, according to Premier Wen Jiabao, a surprising turn that could weaken arguments for yuan appreciation, despite mounting United States pressure on Beijing to strengthen its currency.
Wen's remarks to a group of multinational executives on Monday came after Commerce Minister Chen Deming said China might post a trade deficit for all of March.
The official China Daily yesterday quoted Wen as saying the trade deficit would be more than US$8 billion in March. The report differed from that of the state-run Xinhua, which only cited Wen as saying that trade surplus had turned into a deficit during the first 10 days of March.
This would be China's first monthly deficit since April 2004 if final data confirms Wen and Chen's forecasts. But analysts said the deficit would be a one-time blip rather than the start of a new trend for the world's largest goods-exporting nation.
'To be honest, I was happy when I learned of the situation,' Wen said, according to China Daily.
'China is by no means seeking a trade surplus. On the contrary, we have left no stone unturned in expanding imports to achieve a trade balance.'
