The GAC said the deficit accounted for only 3.1 percent of total trade volume in March, much lower than the 10-percent alarm level of a trade imbalance.

"The March deficit stemmed mainly from the fast growth of imports by China amid its efforts to increase imports against the backdrop of the global economic downturn," the report said. "China's efforts (to expand imports) helped with the recovery of world economy and demonstrated its role as a responsible country."

The GAC predicted China's trade surplus might continue to scale down and keep a trade balance for the rest of the year.

Zhao Jinping, an economist and researcher with the Development Research Center of the State Council, anticipated China's exports growth would slow in the second quarter because the base was too low in the first quarter last year when the world was in the middle of the global financial crisis.

Zhao estimated exports growth of 10 to 15 percent for the year, while imports growth would be slightly faster as China's economy had taken the lead in the world recovery.

China would post an annual trade surplus similar to or slightly narrower than last year's, he said.

The country recorded a trade surplus of US$196.1 billion last year, down 34.2 percent from 2008.

"We cannot be too optimistic and we still need in place those policies to stabilize external demand," he said.

GAC figures showed the surplus with the United States in March dropped 3.5 percent year on year to US$9.87 billion and that with the European Union fell 13.1 percent to US$6.96 billion.

However, China's March deficit with Japan more than tripled over the same month of last year to US$6.53 billion while its deficit with the Republic of Korea jumped 76 percent to US$6.13 billion.

The establishment of the ASEAN-China Free Trade Area on Jan.1 greatly boosted China's trade with the bloc, with ASEAN's trade surplus with China rocketing to 2.7 billion from US$300 million last year.

The Chinese mainland's deficit with Taiwan amounted to US$7.9 billion in March, up 78.7 percent year on year.

(Xinhua News Agency April 10, 2010)