An analysis of Soviet and Western data to test the validity and explore the economic meaning of Peking's claim that prices in its trade with the Soviet Union have been "reasonable and fair." Average unit values of selected commodities traded between Communist China and the USSR for the years 1955-1959 are compared with the unit values of similar commodities in Russia's trade with its European satellites and in Communist Chinese and Soviet trade with free countries. The data are limited, but for the commodities covered it appears that there is a "China differential" unfavorable to the Chinese. Some tentative explanations are offered for the observed differential.
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