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Another big reason for the expanding bilateral deficit lies in changing patterns of trade.
The huge US trade deficit worldwide is sufficient to explain the bilateral deficit.
Knock out these and America's bilateral deficit with China shrinks by more than half.
Exports to China fell almost 10%, the first time the bilateral deficit had widened for three years.
But it is the bilateral deficit between China and America that sets off fires on both sides.
Instead, last year their trade in goods was worth $70.6 billion, and India had a bilateral deficit of $37.8 billion, according to Chinese customs data.
Similar(38)
But if Europe is to start reducing its bilateral deficits with China, it will have to make even more adjustments.
"Smaller U.S. trade deficits with China, offset by larger bilateral deficits with other countries, cannot be expected to provide material job growth," concluded recent research by the Federal Reserve Bank of St . Louis
Although China has a big bilateral surplus with the United States as which country does not?—it is running bilateral deficits with most of its supposedly threatened neighbours, including South Korea, Malaysia and Thailand.Those deficits point to another factor that the fear-of-China brigade tends to ignore: the country's potential as an export market.
Should we at least be concerned about the growing bilateral deficits with Mexico and China?
But most economists think it makes much less sense to worry about individual bilateral deficits.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com