Since most global trade is parts and components en route to eventual final assembly, simple bi-lateral trade numbers tell an incomplete picture.
“China happens to be at the end of many Asian value chains, taking sophisticated components from Japan, the Republic of Korea, and Chinese Taipei and assembling these into final products.”
“the Chinese domestic value content of their exports of ICT (information and communication technology) products accounts for only around half the total export value.”
“the US trade deficit in ICT products with China is cut roughly in half if the calculation is made in value added terms.”
