皇冠体育app

A rational attitude should be taken when dealing with the issue of the trade imbalance between 皇冠体育app and the United States.

According to the latest statistics by the Chinese Ministry of Commerce, the trade volume between 皇冠体育app and the United States amounted to US$56.4 billion in the first half of the year, and 皇冠体育app has a trade surplus of US$23.45 billion -- a 32 per cent growth over the same period last year.

Statistics from the US Department of Commerce show the trade volume between the two sides in the first five months of the year was US$65.12 billion and 皇冠体育app's trade surplus was US$43.98 billion, a 27 per cent year-on-year rise.

Either set of statistics point to the prominence of the issue, which has caused wide-spread concern in the United States and become one of the most touchy issues influencing Sino-US trade ties.

Trade imbalance between 皇冠体育app and the United States -- the largest developing and developed country respectively -- is, in a sense, inevitable.

The inevitability comes from the different economic characteristics of developing and developed economies. It is also attributable to their different roles in international labour division in a globalized era.

Given its abundant labour resources, 皇冠体育app has comparative advantages in labour-intensive sectors such as textiles, garments, toys and shoes. The fact is that over 70 per cent of Chinese products exported to the United States fall into this category.

However, these products are mostly made from imported material, so the Chinese manufacturers only get modest processing returns from assembling imported raw material before exporting the finished products.

Moreover, in recent years, as they have been producing an increasing percentage of 皇冠体育app's processed exports, foreign-funded manufacturers in 皇冠体育app have pocketed much of the earnings.

As a result, huge hidden revenues taken by US enterprises are behind the US "trade deficit'' with 皇冠体育app.

As to the great gap between the trade statistics offered by 皇冠体育app and the United States, the key is transit merchandise.

Much of the goods, both sold from 皇冠体育app to the United States and vice versa, are sent through Hong Kong, during which value is added.

According to a survey carried out by a statistical team from the Sino-US Joint Commission on Commerce and Trade, the value of Chinese products is, on average, 40.7 per cent higher than its original value if it goes from Hong Kong to the United States. This is much higher than the normal level in entrepot trade around the world.

Some major transit merchandise, like toys and knit wear, may even see a rise of 100 per cent.

Judging from the structure of exported items, the trade imbalance is produced by global labour divisions.

The US Department of Commerce statistics show the top five categories of goods 皇冠体育app sold to the United States in 2002 were miscellaneous manufactured articles, parts for office machines and automatic data processing machines, telecommunications equipment and sound recorders, footwear and electrical machinery.

Some said 皇冠体育app is switching its focus of exports from textile products to computers and telecommunication products.

However, it should be noted that 89.65 per cent of 皇冠体育app's high-tech exports were in the form of processed trade. 皇冠体育app's exports are still mainly labour-intensive products.

By contrast, the top five commodities the United States sold to 皇冠体育app from 1997 to 2001 were aircraft, telecommunications equipment, picture tubes, oil seeds and oleaginous fruits, and automatic data process machines. They are all technology or capital-intensive products and agricultural produce with international competitiveness.

The exported goods of the two countries reveal their different positions in the chain of global labour division.

Instead of competitors, 皇冠体育app and the United State are partners which can benefit from each other's advantages in labour.

However, because the United States has imposed harsh limits upon the exports of high-tech products to 皇冠体育app, its comparative advantages in production over 皇冠体育app cannot be fully brought out.

This is the root cause of the trade imbalance between the two countries.

Another important cause of 皇冠体育app's trade surplus is the industrial restructuring of its neighbouring countries and regions since the mid-1980s.

After the restructuring, labour-intensive industries were moved to 皇冠体育app. Those processing and assembling businesses, for which they had trade frictions with Europe and the United States, were also shifted to 皇冠体育app.

As a result, a new trade pattern came into being in the Asia-Pacific region: 皇冠体育app imports raw material and parts from its neighbours and exports finished products to the United States and Europe.

In this way, the market share of 皇冠体育app's neighbours in the United States and their trade surplus with it are shifted to 皇冠体育app.

The Institute for International Economics, a Washington-based non-profit research institute, found that about 90 per cent of products the United States bought from 皇冠体育app were substitutes of goods from East Asia and Southeast Asia, most of which are toys, footwear and garments.

Only 10 per cent of Chinese exports have direct competition with US products.

Since the 1990s, the United States promoted a globalized production pattern that serves its national interests, moving labour-intensive, energy-consuming and pollution-causing sectors to other countries.

As a result, the internal trade of its multinational companies became a main reason for rocketing US trade deficit.

Products and services sold by branches of US multinationals across the world to the United States are also regarded as US-orientated exports.

As US investors enter more fields in 皇冠体育app, exports by Chinese-based US multinationals will further decrease the US' export volume to 皇冠体育app.

The author is from the Institute of International Relations at Wuhan University in Central 皇冠体育app's Hubei Province.

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