More monthly deficits 'likely'

Trade figures may reduce pressure for yuan appreciation, experts say

BEIJING - China is "highly likely" to see more trade deficits in the coming months after it reported a surprise February deficit, the biggest in 7 years, due to slowing overseas demand and rising commodity prices, economists said.

The General Administration of Customs (GAC) announced on Thursday a deficit of $7.3 billion in February, the first since last March's deficit of $7.2 billion.

The deficit, some economists believe, could help reduce pressure to appreciate the yuan.

"It is absolutely good news for China, at least in the short term, as calls by some countries for yuan appreciation are getting stronger," said Zhou Shijian, senior researcher at the Center for US-China Relations at Tsinghua University.