China had its largest trade deficit since at least 1989 lastmonth as Europe's sovereign-debt turmoil damped exports and importsrebounded after a weeklong holiday.

The shortfall was $31.5 billion, the customs bureau saidyesterday. Imports rose 39.6 percent from a year earlier, after a15.3 percent slump in January, while exports increased 18.4percent, the bureau said. Data in the first two months aredistorted by the timing of the Lunar New Year holiday, which fellin January this year and February in 2011.

The data, along with lower-than-forecast inflation, industrialoutput and retail sales reported March 9, raise the odds PremierWen Jiabao will ease policies to support growth in the world'ssecond-biggest economy. Commerce Minister Chen Deming's warninglast week that boosting trade by 10 percent this year will require“arduous efforts” may also signal a slower pace of yuan gains aspolicy makers seek to aid exporters.