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China-United States Bilateral Trade Balance: How Big Is It Really?, The
Working Paper

Published By

Shorenstein APARC, page(s): 26

April 1996

There are huge discrepancies between the official Chinese and U.S. estimates of the bilateral trade balance. The discrepancies are caused by different treatments accorded to re-exports through Hong Kong, re-export markups, and trade in services. Deficit-shifting between China, on the one hand, and Hong Kong and Taiwan, on the other, due to direct investment in China from Taiwan and Hong Kong, is partly responsible for the growth in the China–United States bilateral trade deficit.

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