Academy of Mathematics and Systems Science, CAS                         Colloquia & Seminars                                                   |                                                                                                                           | Speaker: |                                                 李鑫茹教授, 首都经贸大学                          |                                                                  | Inviter: |                          |                                                                                          Title:                          |                         China-U.S. Trade              Balance from the National Income Perspective |                                                                                          Time & Venue:                          |                         2021.11.18 15:20-16:00              内部讨论班 |                                                                                          Abstract:                          |                                                 We calculate the China-U.S. trade balance from the national income                perspective based on an input-output model that differentiates domestic                and foreign-invested companies. The result shows that due to different                degrees of dependence of both countries on foreign production factors                such as foreign capital for the manufacturing of export goods,only                87.7% of the domestic value-added created by China's exports to                the U.S. in 2012 was China's national income, whereas 96.2% of value-added                in U.S. exports to China was U.S.national income. In the comparison                of total export volume and export value-added, the home country's                national income created by exports can more realistically reflect                a country's gains from trade. In 2012, China's trade surplus with                the U.S. stood at 102.8 billion US dollars in national income terms,                which is 61% and 22% smaller than the results in gross and value-added                terms, respectively. The implication is that the traditional trade                balance accounting method seriously exaggerates the China-U.S. trade                imbalance.                          |                                                                   |                                                                           |                                                                |