Vehicle imports up 240% in March!

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Shock news from Gasgoo:

Shanghai, April 14 (Gasgoo.com) China’s Ministry of Commerce said, according to figures released by the General Administration of Customs (GAC) the country’s foreign trade in March was over $112billion, up more than 24 percent, while imports increased by 66 percent to more than $119 billion, resulting in a trade deficit of over $7.2 billion. It’s China’s first monthly trade deficit in six years in March

Yao Jian, spokesman of the Ministry of Commerce said the emergence of trade deficit in March, mainly due to surging import volumes under the rise of China economy and domestic consumption. In March, spurred by rising commodity prices, the surging import of raw materials such as oil, iron ore and copper pulled up total imports by 15.3 percent, with 3.1 percent contributing from quantity and 12.2 percent from price. Vehicles import increase rapidly during the period to $3.2 billion, a 240-percent rise compared to last year.

China’s trade surplus declined to nearly $14.5 billion, a slump of 76 percent compared to last year while the imports and exports rose 44 percent to $617billion. Yao Jian emphasizes that the continuous improvement of the trade balance has created a stable environment for the yuan. With the stable environment of the yuan, China’s trade surplus kept declining until to trade deficit in March, which means the main driver of trade balance is market supply-demand relationship but not the exchange rate under globalization.