Trade surplus fall

The negative trade drag in the first quarter is now slowing China's economic growth. It is a needed step to reduce the country's excessive dependence on export for growth. Policymakers should make good use of the shrinking trade surplus to fight both economic overheating and runaway inflation.

Latest statistics from customs show that China's trade surplus fell by 10.9 percent year on year to $41.4 billion for the first three months of the year, marking the first quarterly decline in three years.

During China's rise as a global manufacturing power in recent years, strong growth of the trade surplus contributed significantly to the country's double-digit growth in the last five years.