Methodology of U.S.-China-Hong Kong Triangular Merchandise Trade Statistic Reconciliation

Abstract

This research note documents the methodology of U.S.-China-Hong Kong triangular merchandise trade statistic reconciliation. Instead of directly comparing the official trade statistics from the United States and China and calculating the discrepancies, the U.S-China-Hong Kong triangular reconciliation methodology takes into account of re-exports and transshipment via Hong Kong. This research note also documents the application of this methodology to advance technology product trade between the United States and China.

Keywords: United States, China, Hong Kong, Reconcile, Trade, Statistics, Export, Methodology

JEL Classification: E0, F0, B4, 053, F1, F13