Monitor | All is not what it seems when it comes to China's trade figures
If double-counting in transshipments and over-invoicing are stripped out of the calculations, US remains a bigger trading power than China
China's trade figures for December are not out yet, but already the local media is trumpeting that the country is the world's greatest trading power, with the United States beaten into second place for the second consecutive year.
Look at the raw numbers, and China's achievement appears truly impressive, especially considering that its economy is only about half the size of America's.
According to customs data, over the 12 months to November, China's gross trade with the rest of the world - exports plus imports - was worth a mighty US$4.1 trillion.
In contrast, the US could only manage a shade less than US$3.9 trillion. Hooray, China is No1.
Unfortunately, however, there are a few problems with China's claim of primacy; so many, in fact, that it is hard to know where to start.
When Beijing releases China’s trade figures, take them with a hefty pinch of salt
First, let's ignore the inconvenient truth that the biggest trading economy in the world is neither China nor the US, but actually the euro zone, whose goods trade with the rest of the world over the 12 months to October - the latest month for which figures are available - came to US$4.8 trillion.