China recorded a trade deficit of US$7.24 billion in March, marking the first monthly deficit in six years, the South China Morning Post reported. The General Administration of Customs said the March deficit was due to a a drop in the export of labor intensive products, a jump in import volumes and rising commodity prices. The customs administration said China exported US$112.11 billion of goods and services in March, up 24.3% from the year before while imports rose 66% to US$119.35 billion. Ministry of Commerce spokesman Yao Jian said, "[The deficit] shows that in an era of economic globalization, the deciding factor for balanced trade is not the exchange rate, but other factors such as the relationship of supply and demand in the market." Analysts believe that the deficit will be a temporary one with exports expected to pick up over the coming months.
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