Chinas changing trade strides

That China reported the largest monthly trade deficit in two decades is no small news. After all, the giant countrys economic telltales reflect immensely on the dynamics of the global economy in one way or the other. The recent trade deficit reported by China has particularly aroused the interest of international media because Chinas previous trade surpluses had been frequently libeled for creating trade imbalances in the world with Chinas soaring exports. Now that China has reported a huge trade deficit of $31.5 billion in February this year, thanks to slumping exports and rising imports, analysts are concerned that the data is a reflection of a slowing global economy. The fact that export growth is slowing in China may plausibly be an indication that countries are buying less in the wake of the recessionary pressures that have taken over the globe. "The fact that Chinese exports may not have performed as well as expected in recent months is in part a reflection of the very large slowdown we have seen in the United States and Europe," Uri Dadush, an economist with the Carnegie Endowment - a Washington-based foreign-policy think tank - was quoted by Reuters in January this year. At the same time, Chinas rising imports may be an indication that the country is working towards improving its domestic economy, either via investments or consumption. China had been receiving a lot of flak for its economy being too dependent on exports. These trade figures might allay some of these concerns to an extent. At the same time, the slowing exports and diminishing trade balance may also be an indication of slowing growth momentum in the country. Many speculate that Beijing will have to work up its monetary easing tools to avoid a possible slowdown of the economy. The implications leave no doubt that China has a lot of thinking to do for the course of its future economic policies. Times ahead may not be as hunky-dory as have previously been for the red dragon.