The U.S. trade deficit in manufactures increased by $23 billion, or 7 percent, during the first three quarters of 2012, compared with 2011, while the Chinese surplus was up by $74 billion, or 16 percent. Over the past three years, the U.S. deficit is projected to have risen by 52 percent, to $495 billion in 2012, and the Chinese surplus by 81 percent, to $764 billion. A final comment addresses where the trade imbalances are likely to go in the year ahead.