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China is working on a new index to put a different spin on trade gap with US

Researchers from Beijing university developing ‘global value chain index’ claim skilled labourers in US could actually benefit from Chinese exports

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China’s trade surplus with the United States hit a record high last year – growing 8.6 per cent year on year to US$275.8 billion. Photo: AP
Frank Tangin Beijing

China has teamed up with two world trade bodies on a new index to bolster Beijing’s arguments that it is not the biggest winner from its exports, and that benefits flow on to buyers.

The index of the global value chain is expected to be released next year and is meant to track how countries gain from being involved in different stages of the production process.

Work on the index is being led by a team from the University of International Business and Economics in Beijing, in collaboration with the World Trade Organisation (WTO) and the Organisation for Economic Cooperation and Development (OECD).

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Researchers from the university this week released a report into who gains along the global chain of production and trade, claiming that skilled labourers in the United States could actually benefit from Chinese exports.

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US President Donald Trump has long accused China of stealing American jobs through unfair trade practices and threatened punitive tariffs, and Friday’s announcement that China’s trade surplus with the US hit a record high last year – growing 8.6 per cent year on year to US$275.8 billion – is expected to add fuel to the flames.
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