China's Trade Balance Shifted from Surplus to Deficit

Steps:

• Calculate China's trade balance for year 1: exports minus imports.
• Determine if year 1 balance is positive (surplus) or negative (deficit).
• Calculate year 2 balance similarly and compare to year 1.
• Identify the change: from positive (surplus) in year 1 to negative (deficit) in year 2.

Why D is correct:

• Trade balance is exports minus imports; a positive value in year 1 indicates surplus, while negative in year 2 indicates deficit, confirming the shift per the balance formula.

Why the others are wrong:

• A: Surplus fell but stayed positive, not turning negative.
• B: Deficit existed and worsened, not starting as surplus.
• C: Balance moved oppositely, from negative to positive.

Final answer: D