Shanghai records a gaping trade deficit in 2011

Shanghai’s trade deficit more than doubled last year (2011) compared to the previous year, local customs officials said Wednesday.

According to the officials, the bustling Chinese city recorded a trade deficit of 7.3 billion U.S. dollars in 2010, a figure that widened to 17.9 billion U.S. dollars in 2011. Exports went up 16% yoy to 209.8 billion U.S. dollars while imports clocked 227.6 billion U.S. dollars, this being a 21% yoy increase, a statement released by Shanghai customs said.

A Shanghai municipal commission of commerce expert Luo Zhisong said that the trade deficit was a clear indication that China had opened up its economy creating market opportunities for foreign businesses.

However, the trade deficit in not the first to be recorded in Shanghai. In the past decade, the city recorded deficits in most of the years except 2007, 2008 and 2009.

The agricultural sector contributed to the deficit at a tune of 7.6 billion U.S. dollars with pork imports going up almost 3% to stand at 129,000 tonnes. Friuts, olive oil, wine and chocolate imports also went up. In 2011, demand for high-end products including watches, clothing, diamonds and cars went up by 50%.

As whole, China’s 2010 trade surplus stood at 155.1 billion U.S. dollars. However, the surplus will further shrink to 120 billion U.S. dollars this year ( 2012) amid concerns of a weakening domestic economy.