If calculated exactly, the profits from surging outbound investment, exports of technologies, patent rights, cultural products and many other intangible goods would have reduced the deficit, Li Deshui, ex-director of the National Bureau of Statistics, told Xinhua in an exclusive interview at the on-going Boao Forum for Asia (BFA) 2006.

The United States has not suffered from a serious economic depression although it reported a trade deficit of 804.9 billion U.S. dollars in 2005, a huge jump from the 39.1 billion U.S. dollars in 1992, Li recalled.

On the contrary, its overall economic growth stood at 3.6 percent last year, slightly higher than that of 1992, and the national unemployment rate dropped to 5.1 percent from 7.5 percent, according to Li.

The deficit failed to calculate the massive profit returns of overseas-based U.S. firms, Li noted, stressing that products shipped back to the United States. have been unreasonably considered as imports.

Statistics from the United Nations show that overseas U.S. companies realized a combined sales volume of 3,383 billion U.S. dollars in 2004, more than three times the exports from its home firms.

A U.S. official report released last March said U.S. companies earned some 315 billion U.S. dollars from the overseas markets in 2003, up 26 percent year-on-year, a large proportion of which had been transferred to the home country.

In addition to the huge profit returns, the Chinese statistical expert also highlighted the booming service trade such as the export of financial consultancy, and the rocketing sales of U.S. cultural products, technologies, patents, trademarks, and standards of various sectors.

"It is impossible for the U.S. customs to register the amount of money if China purchases a movie from the United States," Li explained.

Asian nations have bought a great deal of national bonds and other assets from the United States, which is another source of huge capital inflow that was undercounted, he added.

According to the International Monetary Fund, the U.S. deficit of the overall balance of payments was 1.5 billion U.S. dollars and 2.8 billion U.S. dollars in 2003 and 2004, respectively.

Such a basically balanced situation could explain why the country has maintained rapid economic growth accompanied by a huge trade deficit, said Li.

The U.S. trade deficit, along with some other global economic challenges like the soaring oil prices, has been widely viewed as a threat that could undermine the world economy.