China swings to $31.5bn trade deficit

China’s trade figures swung to a significant deficit in February, prompting speculation that Beijing will take further steps to stimulate the economy in coming months, The Wall Street Journal reported. The figures, which showed that China’s trade deficit ballooned to US$31.5 billion last month, followed a string of other disappointing economic data, including weak growth in car sales, industrial production and retail sales. January data was lackluster in part due to seasonal disruptions – the week-long Lunar New Year holiday fell in January this year and February last year – but even when combining January and February, the trade deficit came to US$4.25 billion, compared with a deficit of US$890 million for the same period last year. Analysts said the government may ease monetary policy and launch subsidy programs for consumer goods in the coming months to bolster economic growth.