Abstract
There are huge discrepancies between the official Chinese and US 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, owing to direct investment in China from Taiwan and Hong Kong, is partly responsible for the growth in the China–US bilateral trade deficit. The 1995 China–US bilateral balance of trade in goods and services, adjusted by both re‐exports and re‐export markups, may be estimated as US$23.3 billion, a large deficit but considerably smaller than the often‐cited official US figure of US$33.8 billion.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
