Trade deficit might appear in March: Commercial ministry

Deputy commercial minister Chen Jian indicated recently it is possibly to see trade deficit in March, although still waiting computed statistics. He also said yuan’s rate would be decided by China itself, which in line with what said recently by Premier Wen Jiabao as well as Chen Deming, the head of the Ministry of Commerce.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

Chen Jian says there are two factors involving with the appearance of trade deficit, first of all it is affected from increased demand of import caused by boosting policies; second, <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />China is not at all striving for trade surplus. When referring to yuan’s rate, Chen points out, “China shall have the right to decide yuan’s rate on basis of its own economic conditions.”

On remarks about Rio Tinto case, Chen says it is just an exception that can not say investment conditions worsened in China. Report from UN presents China still remains as the most attracted country in the world. He stresses China will firmly follow the open policy to absorb foreign funds, and all of the foreign investors will be better-off if abide by the laws in China. However we will continually improve the investing environment accordingly, says he.