Did the U.S. Bilateral Goods Deficit With China Increase or Decrease During the US-China Trade Conflict?

Abstract

The United States bilateral goods trade deficit with China appeared to have narrowed substantially since the escalation of the U.S.-China trade conflict in 2018, or so U.S. trade data suggest. By contrast, the Chinese data tell a much different story: the deficit, as implied by China s bilateral surplus, nearly reached historical highs by the end of 2020.