Why Should the Recorded U

Multiple Choice

Why should the recorded U.S.-Chinese bilateral trade deficit in goods be interpreted with some caution?

A) U.S. imports of Chinese products may be produced by U.S. subsidiaries that generate profits for the U.S. parent firms (recorded as U.S. service export income) .
B) U.S. imports of Chinese products may utilize material inputs that China imports from the United States.
C) U.S. imports of Chinese products may be produced with capital goods (e.g., machinery) that China imports from the United States.
D) China does not record all of its imports from the United States in its trade statistics.