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Adjusted Estimates Of United States–China Bilateral Trade Balances: An Update

Author

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  • K. C. Fung
  • Lawrence J. Lau
  • Yanyan Xiong

Abstract

. Large differences exist between the official United States and Chinese data on trade balances between the two countries. In this paper, four adjustments are made to the export and import data of the two governments: (i) freight along side (f.a.s.)‐free on board (f.o.b.) and cost, insurance and freight (c.i.f.)‐f.o.b. conversions; (ii) re‐exports through Hong Kong (and elsewhere); (iii) re‐export markups; and (iv) trade in services. After adjustments, our best estimate for the 2005 bilateral trade balance is $US170.7 billion, in China's favour, which is much larger than the official Chinese balance of $US114.2 billion but also much smaller than the official US balance of $US201.6 billion.

Suggested Citation

  • K. C. Fung & Lawrence J. Lau & Yanyan Xiong, 2006. "Adjusted Estimates Of United States–China Bilateral Trade Balances: An Update," Pacific Economic Review, Wiley Blackwell, vol. 11(3), pages 299-314, October.
    • Handle: RePEc:bla:pacecr:v:11:y:2006:i:3:p:299-314
    DOI: 10.1111/j.1468-0106.2006.00317.x
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    References listed on IDEAS

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    1. Amjadi, Azita & Yeats, Alexander J., 1995. "Have transport costs contributed to the relative decline of sub-Saharan African exports? Some preliminary empirical evidence," Policy Research Working Paper Series 1559, The World Bank.
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    2. Zhi Wang & Mark Gehlhar & Shunli Yao, 2007. "A Globally Consistent Framework for Reliability-based Trade Statistics Reconciliation in the Presence of an Entrepôt," Trade Working Papers 22715, East Asian Bureau of Economic Research.
    3. Nathalie Aminian & K. C. Fung & Maurice K. S. Tse, 2016. "The Euro and the Yuan: Some Political Economy Considerations," China Economic Policy Review (CEPR), World Scientific Publishing Co. Pte. Ltd., vol. 5(01), pages 1-13, June.
    4. Ferrantino, Michael J. & Liu, Xuepeng & Wang, Zhi, 2012. "Evasion behaviors of exporters and importers: Evidence from the U.S.–China trade data discrepancy," Journal of International Economics, Elsevier, vol. 86(1), pages 141-157.
    5. Xuemei Jiang & Quanrun Chen & Cuihong Yang, 2018. "A Comparison Of Producer, Consumer And Shared Responsibility Based On A New Inter-Country Input–Output Table Capturing Trade Heterogeneity," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 63(02), pages 295-311, March.
    6. Oda, Hiromu & Noguchi, Hiroki & Fuse, Masaaki, 2022. "Review of life cycle assessment for automobiles: A meta-analysis-based approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 159(C).
    7. Barry Bosworth & Susan M. Collins & Aaron Flaaen, 2008. "Trading with Asia’s Giants," Trade Working Papers 22145, East Asian Bureau of Economic Research.
    8. Alejandro Ayuso-Díaz, 2021. "Natural Trading Partners Versus Empires in East and Southeast Asia Regional Integration (1840-1938)," Documentos de Trabajo (DT-AEHE) 2110, Asociación Española de Historia Económica.
    9. Barry Bosworth, 2008. "Trading with Asia’s Giants," Working Papers id:1615, eSocialSciences.
    10. Fuse, Masaaki & Yamasue, Eiji & Reck, Barbara K. & Graedel, T.E., 2011. "Regional development or resource preservation? A perspective from Japanese appliance exports," Ecological Economics, Elsevier, vol. 70(4), pages 788-797, February.
    11. Francisco Benita & Carlos M. Urzúa, 2016. "Mirror trade statistics between China and Latin America," Journal of Chinese Economic and Foreign Trade Studies, Emerald Group Publishing Limited, vol. 9(3), pages 177-189, October.
    12. Prema-chandra Athukorala & Archanun Kophaiboon, 2013. "Trade and Investment Patterns in Asia: Implications for Multilateralizing Regionalism," Departmental Working Papers 2013-16, The Australian National University, Arndt-Corden Department of Economics.
    13. Ayuso-Díaz, Alejandro, 2022. "Natural trading partners versus empires in East and Southeast Asia regional integration (1840-1938)," Journal of the Japanese and International Economies, Elsevier, vol. 63(C).
    14. Ahmed, Syud Amer, 2007. "Outsourcing and US Manufacturing Employment," Conference papers 331634, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    15. Ho, Lok Sang, 2012. "Globalization, exports, and effective exchange rate indices," Journal of International Money and Finance, Elsevier, vol. 31(5), pages 996-1007.
    16. Yao, Yang, 2014. "The Chinese Growth Miracle," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 7, pages 943-1031, Elsevier.
    17. Dietzenbacher, Erik & Pei, Jiansuo & Yang, Cuihong, 2012. "Trade, production fragmentation, and China's carbon dioxide emissions," Journal of Environmental Economics and Management, Elsevier, vol. 64(1), pages 88-101.
    18. Wang, Zhi & Gehlhar, Mark & Yao, Shunli, 2010. "A globally consistent framework for reliability-based trade statistics reconciliation in the presence of an entrepôt," China Economic Review, Elsevier, vol. 21(1), pages 161-189, March.
    19. Ferrantino, Michael J. & Wang, Zhi, 2008. "Accounting for discrepancies in bilateral trade: The case of China, Hong Kong, and the United States," China Economic Review, Elsevier, vol. 19(3), pages 502-520, September.
    20. Robert Lafrance, 2008. "China's Exchange Rate Policy: A Survey of the Literature," Discussion Papers 08-5, Bank of Canada.

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