compensation trade

English

Noun

compensation trade (uncountable)

1. A form of countertrade in which an investor is paid back by a share of the proceeds or results generated by the goods and services that the investor provided.
   • 1993, Nicholas R. Lardy, Foreign Trade and Economic Reform in China, →ISBN, page 41:

     Among the most important of these were export processing and compensation trade.

   • 1997, François Soulard, The Restructuring of Hong Kong Industries and the Urbanization of Zhujiang Delta, 1979-1989, →ISBN:

     But in the case of one category of investment, direct compensation trade (p. 137), the investment takes the form of productive capital, i.e. machinery and equipment.

   • 2006, Jonathan Reuvid, Li Yong, Doing Business with China, →ISBN, page 140:

     Incentives for using compensation trade include tax advantages, flexibility in structuring the agreement, and no involvement for the foreign party in labour issues.

   • 2014, Rosalie L. Tung, U.S.-China Trade Negotiations, →ISBN:

     Why did E-S Pacific choose the joint-venture formula over compensation trade?