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We import from China almost 6 times what we export to them, measured in dollars. China has for years kept their currency exchange rate fixed at a lower rate than many countries believe it would be in a free market. They do it by buying buying us currency and bonds. The low value of their currency is what makes their products cheap and appealing. This has been a good thing for US consumers (quality issues aside) and they have been picking up the tab for the enormous amounts of debt americans have been running up in order to have things they can't really afford. Now things are starting to unravel and so the large reserves they hold have become more of a threat than we have cared to notice before. While some politicians are attacking China for the currency imbalance the real issue is the trade restrictions that they impose on us while enjoying far less restrictions here.