TY  - JOUR
AU  - Fung,K.C.
TI  - Accounting for Chinese Trade: Some National and Regional Considerations
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 5595
PY  - 1996
Y2  - May 1996
UR  - http://www.nber.org/papers/w5595
L1  - http://www.nber.org/papers/w5595.pdf
N1  - Author contact info:
K.C. Fung
Department of Economics, UC, Santa Cruz
217 Social Sciences 1
Santa Cruz, CA 95064
E-Mail: kcfung@ucsc.edu
M1  - published as K. C. Fung. "Accounting for Chinese Trade: Some National and Regional Considerations," in Robert E. Baldwin, Robert E. Lipsey and J. David Richards, editors, "Geography and Ownership as Bases for Economic Accounting" University of Chicago Press (1998)

AB  - 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.
ER  -