By V. Phani Kumar, MarketWatch HONG KONG (MarketWatch) — China unexpectedly posted a trade deficit in February, according to official data released Thursday, and economists said this could reduce pressure on the country to allow its currency to appreciate. The rate of growth for both indicators tapered off considerably from the levels seen in January, distorted by the Chinese New Year holidays during the month. Monthly exports grew a modest 2.4% from the year-earlier period, while imports grew 19.4%, after soaring 37.7% and 51%, respectively, in January. The slowdown swung the country’s trade balance to a deficit of $7.3 billion in February, more than offsetting January’s $6.5 billion trade surplus and giving China a net trade deficit in the first two months of the year. The deficit might have implications for the pace at which China allows the yuan to appreciate against the U.S. dollar, say economists. By V. Phani Kumar, MarketWatch HONG KONG (MarketWatch) — China unexpectedly posted a trade deficit in February, according to official data released Thursday, and economists said this could reduce pressure on the country to allow its currency to appreciate. The rate of growth for both indicators tapered off considerably from the levels seen in January, distorted by the Chinese New Year holidays during the month. Monthly exports grew a modest 2.4% from the year-earlier period, while imports grew 19.4%, after soaring 37.7% and 51%, respectively, in January. The slowdown swung the country’s trade balance to a deficit of $7.3 billion in February, more than offsetting January’s $6.5 billion trade surplus and giving China a net trade deficit in the first two months of the year. The deficit might have implications for the pace at which China allows the yuan to appreciate against the U.S. dollar, say economists.

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