Trade figures seen as stabilizer of yuan
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The improved trade balance of China, which posted its first trade deficit in six years in March, would help the yuan keep "basically stable," the Commerce Ministry said over the weekend.
The March and first-quarter trade figures showed the deciding factor for balance of trade was not the exchange rate, but market supply and demand, open policy and other factors, said Commerce Minister Chen Deming.
"The continued improvement in our country's balance of trade has created conditions for the yuan's exchange rate to remain basically stable," Yao Jian, the ministry's spokesperson, said in a statement.
China's trade surplus would continue to "fall heavily" in 2010, following a decrease of US$100 billion year on year in 2009, Yao said.
Yao also called for the removal of restrictions by some developed countries of certain high-tech product exports to China "as soon as possible" to facilitate the trade balance.
Some of China's trading partners, including the United States, have been consistently saying that China's practice of keeping the yuan pegged to the greenback gives its exporters an "unfair advantage."
In the first quarter, however, China's trade surplus tumbled 77 percent from a year ago to US$14.49 billion, without a movement in the yuan rate.
In March, China had a trade deficit of US$7.2 billion, ending a streak of surpluses since May 2004, the General Administration of Customs said.
Exports grew by 24.3 percent from March last year to US$112.11 billion, while imports jumped 66 percent to US$119.35 billion.
Surging domestic demand largely fueled imports last month, Yao said.
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