China Trade Deficit In February Reaches Highest Point Since 1989

China’s trade deficit hit its highest level since nearly two decades ago– a  $31.5 billion negative number in February. A primary cause was a fall off in demand for finished goods put out by factories, which has been undermined by the recession in Europe. Imports were affected by the rise in cost of raw materials which include oil. The trend is likely to persist as long as Brent remains above $115. Analysts believe that the import picture was actually good. If China is importing, it must be to build goods for export. That theory is undercut by the cost of fuel, which may only have increased because of inflation of price.