China swings to trade deficit in Feb

China swung to a large trade deficit in February as imports grew much faster than exports amid uncertainties in the global economy, the Chinese customs office said Saturday.

Last month, the world's No. 2 economy posted a US$31.5 billion trade deficit, compared to a $27.3 billion trade surplus in January, according to the General Administration of Customs.

The trade deficit was the first recorded by China in a year.

Exports increased 18.4 percent on-year to $114.47 billion, while imports rose 39.6 percent to $145.96 billion over the cited period.

The country's foreign trade rose 7.3 percent year-on-year to $533.03 billion in the first two months, with a combined trade deficit of $4.25 billion, the customs office said.

The monthly growth in exports was largely attributed to weaker external demand in major trading partners such as the United States and Europe.

"February exports are likely to deliver a big downside surprise on March 10," HSBC said in a report released on Friday. "Growth of exports to Europe recorded 2-3 percent decline for Jan-Feb period, following the notable deceleration in the second half of 2011." (Yonhap)