Accounting for Chinese Trade: Some National and Regional Considerations
In: Geography and Ownership as Bases for Economic Accounting
China's trade has three features: high incidence of re-exports through Hong Kong, high degree of trade related to foreign investment, and large amount of `illegal' trade. Re-exports occur when imports to Hong Kong are consigned to a buyer in Hong Kong, who adds a markup, and exports the goods elsewhere without fundamentally changing the goods. Using U.S. data and accounting for re-exports, the U.S.-China trade balance has to be lowered by 35 percent. Foreign investments in China accounted for 45 percent of China's exports. Foreign investments include foreign direct investment (FDI) and foreign subcontracting. `Illegal' trade between China and Taiwan has been induced by Taiwan's `no direct trade' policy. Illegal trade such as smuggling and tariff evasion also affect China's trade with her other trading partners.
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- Yue-Chim Richard Wong, 1995. "China'S Economic Reform: The Next Step," Contemporary Economic Policy, Western Economic Association International, vol. 13(1), pages 18-27, 01.
- Magnus Blomstrom & Irving B. Kravis & Robert E. Lipsey, 1988. "Multinational Firms and Manufactured Exports from Developing Countries," NBER Working Papers 2493, National Bureau of Economic Research, Inc.
- Robert E. Baldwin & Douglas Nelson, 1993. "The Political Economy of U.S.-Taiwanese Trade and Other International Economic Relations," NBER Chapters, in: Trade and Protectionism, NBER-EASE Volume 2, pages 307-337 National Bureau of Economic Research, Inc.
- Marcus Noland, 1995. "China and the International Economic System," Working Paper Series WP95-6, Peterson Institute for International Economics.
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