In this undated in this file photo, a farmer in the US state of Washington transports apples, which are popular on China's e-commerce platforms. (PHOTO / XINHUA)
BEIJING – A Ministry of Commerce report has said US claims of a US$500 billion trade deficit with China, along with US arguments that the country has sustained a "loss" in US-China trade, are inconsistent with facts.
The report, issued on June 6, points out specific details in support of its statement.
The following data demonstrate why US propagation of a "loss" in US-China trade is groundless:
1. Did US have a trade deficit in goods with China as it claims?
US trade deficit in goods with China was overestimated by 21 percent in 2015. Reckoning on the ratio, US trade deficit in goods with China was overestimated by US$88 billion in 2018.
Statistics from China: China's trade surplus in goods with the US hit US$323.33 billion in 2018.
Statistics from the US: US trade deficit in goods with China hit US$419.16 billion (about US$419.2 billion) in 2018.
Different from its claim, US only have US$240.9 billion trade deficit in goods with China.
US$419.2 billion (US claim of trade deficit in goods with China)
- US$88 billion (the part that has been overestimated)
= US$331.2 billion (the actual US trade deficit in goods with China)
- US$90.3 billion (China’s import of parts in processing trade with the US)
= US$240.9 billion
2. China is the US' third largest goods export market, and is its major market for export of aircrafts, soybeans, cars, integrated circuits, and cottons.
3. From 2009 to 2018, over 1.1 million jobs were supported by US export to China.
4. US consumer prices dropped 1-1.5 percent in 2015 thanks to cheap products imported from China.
The US made great profits from trade with China
1. The US has made US$940 billion from trade with China and related activities in 2017.
US$153.9 billion (US goods export to China)
+ US$87.1 billion (US service export to China)
+ about US$700 billion (Actual sales revenue of US companies in China)
≈ US$940 billion
2. Capital flows into the US totaled US$1.37 trillion from China by the end of 2017.
US$155.8 billion (Accumulative investment to US from China)
+ US $1.18 trillion (US debt that China owns)
+US$32.6 billion (Investment income of US financial entities that invest in China’s financial entities)
≈ US$1.37 trillion