China sees first monthly trade deficit in three years

Beijing

CHINA unexpectedly posted its first trade deficit in three years in February as imports surged far more than expected to feed a construction boom, driven by commodities from iron ore and copper to crude oil and coal.

The upbeat import reading reinforced the growing view that economic activity in China picked up in the first two months of the year, adding to a global manufacturing revival.

That could give China's policymakers more confidence to press ahead this year with oft-delayed and painful structural reforms such as tackling a rapid build-up in debt.

"We suspect that this largely reflects the boost to import values from the recent jump in commodity pri…