China's Global Trade Balance Discrepancy: Hong Kong Entrepot Effects and Round-Tripping Chinese Capital

摘要

The U.S.-China Security Review Commission and the United States Congress, commissioned the Trade Lawyers Advisory Group (TLAG)--specifically, members CRG Consulting Texas, Inc. (CRG-Texas) and Georgetown Economic Services LLC (GES)--to undertake a comprehensive study of the persistent and growing discrepancy in the trade balance data of the Peoples Republic of China (China, the Mainland, or the PRC) and the data reported monthly by trade partner governments. The purpose of this study is to examine the role of Hong Kong in the various explanations of the statistical discrepancies that readily emerge when one compares official Chinese trade data with those of its trading partners. Today, many international scholars and researchers are of the view that China's entrepot trade through Hong Kong is to the largest factor responsible for the widening Chinese trade balance discrepancy. The distortion becomes apparent after one examines China's official trade statistics in light of the corresponding mirror trade data compiled by its partner nations.