Research on the association of China-US virtual water trade based on hypothesis extraction method

Based on the EORA input-output tables from 2006 to 2016, this paper divided 189 countries in the world into three economies (China, the USA, and other countries) and used the hypothetical extraction method to calculate the virtual water trade volume of the three economies in the Sino-US bilateral trade. Combining with the analysis of the global value chain, the following conclusions were drawn: (1) the virtual water trade volume exported by China and the USA showed an overall increasing trend. The virtual water trade volume exported by the USA was far less than that of China, but more virtual water was transferred through trade. (2) Compared with intermediate products, China's virtual water exports of final products were larger, but the USA was the opposite. (3) Among the three major industrial sectors, the secondary sector was the largest virtual water export sector in China, but it was the primary sector in the USA that had the largest volume of. (4) Bilateral trade had brought environmental disadvantages to China, but this situation was gradually improving.