This was China's first trade deficit since 1997. The trade surplus for the first quarter of 2002 was US$7.3 billion.

The deficit was mainly due to the sharp rise in imports, Yao said, noting that the increased demand for imported energy and raw materials prompted by the rapidly growing economy, the increased need for foreign consumer goods driven by the upgraded consumption patterns of Chinese people and a more open market in China were all contributing factors.

Statistics show that the volume of exports and imports from January to March this year was 86.32 billion US dollars and US$87.34 billion, up by 42.4 percent and 52.4 percent respectively over the same period last year.

China imported 22.22 million tons of crude oil and 5.95 million tons of finished oil products in the first quarter, and their respective value rose 1.38 folds and 1.48 folds due to expanding imports and higher prices on the world market.

The continuous tariff reductions and active domestic investment also led to 8.58 million tons of steel imports, up 74.7 percent year-on-year, and 47,000 imported automobiles and chassis, a 174 percent rise over the same period of 2002.

Quarterly or short-term trade deficit is quite normal and common in the global economy, Yao said, noting that the rapid growth of imports in the first quarter contributed greatly to the fast growth of China's economy.

China's imports and exports will continue to register rapid growth under current conditions, and the total volume of exports should exceed that of imports during the year, Yao said.

(Xinhua News Agency April 18, 2003)