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15.
The worsening trade balance with China has been balanced
by improvements against Hong Kong and Taiwan, mainly because
Hong Kong and Taiwanese companies have relocated production to
China's coastal provinces. The combined US trade deficit with China, Hong Kong and Taiwan showed no trend deterioration
between 1987 and 1992, starting and ending the period at a
deficit of $27 billion.
十
16. In October 1992 China and the US reached a wide ranging agreement on market access "Special 301") China agreed to phase out three quarters of its import licences, quota and non-tariff barriers within two years. In the US, the agreement
was seen as a stepping stone for Chinese reaccession to the GATT
as well as a means to cutting the bilateral trade deficit.
TABLE: US TRADE BALANCES WITH CHINA AND HONG KONG/TAIWAN
(US $ billions)
1987
1988
1989
1990
1991
1992
CHINA
-3.0
-3.6
-6.2
-10.4
-12.7
-16.2
CHINA/HK/ -26.7
TAIWAN
-21.3
-22.8
-24.3
-23.7
-27.1
Sources: IMF and US Dept of Commerce
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