About The Chinese Trade Deficit
I should in this context comment on the fact that some people have argued that this deficit is too convenient to be true and that the Chinese statistical authorities are "cooking the books" on this issue to ease foreign attack on the currency peg.
While it can't be ruled out that Chinese authorities have manipulated the numbers slightly, the larger picture is highly unlikely to be false. Why? Well, because trade numbers are reported by both the export nation and the import nation. If China were to report a $7.2 billion deficit even though in reality they had a surplus, we would see a big discrepancy relative to numbers reported by China's trading partners. For this reason, it is much more difficult to get away with manipulating trade statistics than other statistics.
Knowing this, Chinese statistical authorities will in order to ensure their credibility refrain from any significant manipulation. Meaning that the reported trade numbers are likely to be basically correct, with at most only minor deviations from the real numbers (or at least minor intentional deviations).