China has recorded a trade deficit of 1.02 billion between January and March, which is said to be the first in 6-years, according to the figures released by the General Administration of Customs. However, they have stated that the trade remained strong in this year's first quarter, with total volume moving up to more than 800 billion US dollars, which records an increase of nearly 30%.

Although Exports increased by 26% to almost 400 billion US dollars, China continues to import more Japanese products, whose growth rate is far below the monthly import growth rate. However, officials have expressed that Japanese earthquake is impacting its exports to China.

Moreover, the  Chief Economist at Peking First Advisory, Dong Xian'an, has given two reasons behind the deficit, which involved the hoarding of commodities by Chinese manufacturers influenced by the increase in prices, owing to the anticipated inflation by the Japanese earth-quake and some Arab nations. Also, the increase in china’s overseas purchases, including high-tech equipment, planes, raw materials and soybean toward the end of 2010.

In addition, the economists believe the trade deficit would not last in terms of efforts to control capital flow, curbing inflation and the tightening policies will hold back import growth by both volume and value.