China may post March trade deficit

China may report a trade deficit of US$390 million in March following dramatic increases in imports of commodities and consumer goods, Bloomberg reported. Rising commodity prices are likely to have pushed the country into its first trade deficit in 6 years, although Chinese exports have fallen for 13 consecutive months and reduced China’s trade surplus 34% to US$196 billion in 2009. US Secretary Treasury Tim Geithner recently visited China, bolstering expectations of a small upward revision in the trading value of the Chinese renminbi. However, a Chinese trade deficit undermines calls for the country to revalue its currency and may limit policy actions to reel in excessive lending.