The politically sensitive US bilateral trade deficit with China narrowed sharply in February, shrinking from $17.9 billion (€14.78 billion) to $13.8 billion and helping to cut the overall US trade deficit from a record $68.6 billion to $65.7 billion.

What will be seen as a welcome development ahead of Chinese president Hu Jintao's visit to the US next week might have been partly due to disruption in Chinese ports caused by the New Year holidays, economists said.

The deficit was roughly level with the same month in the preceding year for the first time since late 2001.

The figures came a day after the end of the US China Joint Commission on Commerce and Trade, an annual series of top-level talks designed to smooth out trade tensions. - (Financial Times service)