Mish parses the numbers for us. The figures show that the US is still alive and well, in spite of superficial appearances.
For one thing, China is chiefly an assembler rather than a producer. For example, I recall reading that the cost of an Apple iPhone out the door is about $125. Although it carries an "Made in China" label, the Chinese contribution is only a bit over six dollars. (Sorry, I've lost the link to that article.)
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The government and corporate accounting of import and export values is intentionally deceptive. The price of a Nike sneaker at the port in China is $10.00 once it arrives in Seattle, the value is $75.00. The marketing and distribution departments "added" the extra value, I guess. My goodness were those employees in America productive! The import export value numbers are meaningless. It is about as meaningful as how Google ends up with all their revenue in tax havens even though most of the work is done in other countries. Did the isle of man and bermuda really export all those google services?
FYI (off-topic)
Another post on MMT by Krugman - this ones a doozy.
http://krugman.blogs.nytimes.com/2011/08/15/mmt-again/#preview
George Will is a liar. He says that we owe China $2 trillion but does Not mention or understand that the Chinese have already been paid.
It's done deal, the money is in their treasury accounts.
How can such a "conservative" journalist be taken for real ?
For every dollar spent on Chinese imports by American consumers, most of it goes into the Chinese account at the US Treasury.
Walmart is a turn-stile for turning Chinese cheapies into Treasuries in their account at the Tsy.
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