China's trade figures $7bn in the red

China's reputation as the global economy's factory has been called into question after it recorded a trade deficit for the first time in six years.

The country, which has leapfrogged Germany and Japan to become the world's second-biggest economy, imported more goods than it exported in March, according to figures released by the customs bureau.

The shortfall, which was far greater than expected by economists, will undermine US efforts to force China to release its currency, the yuan, from its dollar peg and allow it to appreciate.

The country pulled in $7.2bn (£4.7bn) more in goods than it pumped out – well above the consensus forecast for a $390m shortfall – as its export levels dropped in the wake of the Chinese New Year holiday. (more)