But, while the total reflects bilateral deficits with just about everyone, the US Congress is obsessed with China, and appears convinced that the primary cause of the problem lies in Chinese manipulation
of the renminbi's exchange rate.
Among the few listed by the Washington Post are: Obama giving audience to Dalai Lama, Chinese refusal to condemn North Korea for the sinking of a South Korean worship, China's bellicose posture to the incident involving a Chinese fishing boat and a Japanese patrol ship, nagging differences over mutual trade and suspected Chinese manipulation
of its currency.
Unlike members of Congress, Paulson is more worried about the possibility of an economic stumble in China whose ripple effects would quickly reach the United States than he is about Chinese manipulation
of its currency to promote exports and limit imports.