US-China trade: A tale of two reports

THE release by China's Ministry of Commerce of a research report on economic and trade relations with the United States is an opportunity for the two countries to narrow differences over trade. In particular, it is an opportunity for the US to take a more balanced view regarding its trade deficit with China.

It is especially illuminating when the Chinese report is placed side by side with that of the US Congressional Research Service made public last month on trade issues between the two countries.

Both reports agree on certain factors that caused the high trade surplus for China (and big trade deficit for the US) under US trade reporting rules. One factor the Chinese report cites is what it calls economic globalisation, which has resulted in "the transfer of manufacturing from other countries".