What actually Tade Balance is? Below news is positive or negative ?
Investing.com - China’s trade balance fell more-than-expected last month, official data showed on Saturday.
In a report, National Bureau of Statistics of China said that Chinese Trade Balance fell to 15.20B, from 28.61B in the preceding month.
Analysts had expected Chinese Trade Balance to fall to 27.70B last month.
Trade balance is the difference between monetary value of export and import of a country over a period of time.
Trade surplus if the trade balance is positive, trade deficit if the trade balance is negative. A long run trade deficit will deplete the country's foreign exchange reserves.
(12-10-2013, 01:55 PM)cyclone Wrote: [ -> ]Trade balance is the difference between monetary value of export and import of a country over a period of time.
Trade surplus if the trade balance is positive, trade deficit if the trade balance is negative. A long run trade deficit will deplete the country's foreign exchange reserves.
So when they said trade balance fell , meant more import than export or the reverse ?
Possibly their import has increased faster than their export, or the other probability is their export has decreased faster than their import.
China seems to be going towards US's old path.....inefficiency, huge oil imports and possibly trade deficits in the future......
While US is gaining from shale gas....less oil imports and lower trade deficits and maybe trade surplus when they start to export their gas.....factories are setting up in US to take advantage of the cheap gas......
So instead of looking at China.....one might start to look at US......US currency might appreciate while RMB.......if those Chinese in china has an opportunity, they would straight away convert their RMB into other currencies and get it out of china....which is why China is trying to 'control' the convertibility of RMB(because they know many people wants out)....hence RMB in the medium term might depreciate.....
(12-10-2013, 06:11 PM)cyclone Wrote: [ -> ]Possibly their import has increased faster than their export, or the other probability is their export has decreased faster than their import.
Base on the info from the link, it was due to a fall in exports. Detail refer to the link below.
More than expected fall in export is a negative news to China.
http://www.tradingeconomics.com/china/balance-of-trade