China Goes American, Registers First Trade Deficit Since ‘04

Forbes reports that the Chinese economy registered a trade deficit in the first quarter of 2011 due in part to higher priced commodities, especially soy from the Americas and iron ore from Brazil.

The editorial is quoted as saying,

The General Administration of Accounting (GAC) said in their report this weekend that, a “strong and rapidly growing domestic economy, plus international markets and the sharp rise in commodity prices and the Spring Festival holiday this year all led to a cumulative deficit of $1.02 billion in the first quarter.” According to the GAC, China imports in the first three months of the year reached $400.66 billion, up 32.6%, while exports totaled $399.64 billion, an increase of 29.5%.

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