We run two hypothetical comparative-static experiments to illustrate two alternative
mechanisms that could result in a rebalancing in US-Asia trade flows using the
GTAP model and the GVC model. The first hypothetical scenario is a decline in real
savings in China by about 17 per cent. The second hypothetical scenario is the US
applies additional duties on imports from China at the rate of 27.5 per cent. These two
experiments are not calibrated to produce the same effect for any particular variable;
thus differences in a particular effect across the two experiments do not imply that
one change is more effective than the other change.