China-US trade figure difference

The Ministry of Commerce says joint research by China and the US has found the trade surplus between the two nations to be smaller than previously quoted by America. The discrepancy is due to differences in surveying techniques. This comes on the heels of escalating disputes on trade imbalance between the two countries.

The Ministry of Commerce says a report conducted by a joint research team from the two sides traces bilateral trade data during 2000, 2004 and 2006 to identify reasons leading to the difference in trade figures of the two countries.

One reason is a part of China's export to the US are first shipped to places like Hong Kong, South Korea, Mexico, and then repackaged, processed or additional prices added, before entering the US.

In China, such exports are registered to Hong Kong, South Korea, or Mexico, but in the US, the goods are registered as imported from China.

The Ministry of Commerce adds processing trade is another big reason for the difference.

Liu Haiquan, Direcror of Comprehensive Dept. of MOFCOM, said, "60 percent of Chinese exports to the US are from processing sectors. These products have different prices when leaving Chinese customs, and entering US customs. The price differences are large. This is also a reason for the differences in trade figures."

The Ministry says after eliminating these elements, the trade surplus between China and US was reduced by 26% to 173.4 billion US dollars in 2006. The Ministry says they hope China and US can clarify the misunderstanding, and make efforts to coordinate economic and trade relations.

He Ning, Director of Dept. of US and Oceania Affairs of MOFCOM, said, "Currently the US is China's second largest trade partner and export market, the sixth largest import source country. While China is the US's second largest trade partner, third largest export market, and largest import source country."

The ministry is also planning a trip to the US in late March to negotiate trade frictions between the two countries.