In fact, the September surplus with the USA was larger than China's overall trade surplus of $31.69 billion for the month.
"We expect both to soften in the coming quarters", he said.
"The United States can not ignore the national security implications of China's efforts to obtain nuclear technology outside of established processes of U.S".
The United States past year shipped US$170 million in nuclear exports to China, according to official figures. "China civil nuclear cooperation", U.S. Secretary of Energy Rick Perry said in a statement. When President Trump first hit China with 25 per cent tariffs on $50 billion of exports in June, Beijing retaliated with $50 billion of tariffs of its own.
Another US official said there will be a "presumption of denial" for all new license applications related to the China General Nuclear Power Group. They flagged particular concern about technology that can power submarines, aircraft carriers and small modular reactors that could be used in floating power plants in South China Sea.
China, the officials said, has been using unfair policies to surpass U.S. industry and without this step, U.S. companies could be placed at "an even greater disadvantage".
US nuclear exports to China amounted to $170 million in 2017, the officials said. The state company is now under indictment for conspiring to steal U.S. nuclear technology.
China's large trade surplus with the United States has always been a sore point with Washington and is at the center of an increasing bitter dispute between the world's two biggest economies.
"They lived too well for too long and, frankly, I guess they think that the Americans are stupid people".
"I have a lot more to do if I want to do it". Americans are not stupid people.
He said although the Chinese want to negotiate, he does not believe they are ready.
Mr Trump is pressing China to improve trading conditions for U.S. products and to end what USA businesses say is widespread theft of their intellectual property. That prompted Mr Trump to threaten to extend the tariffs to nearly all China's $500 billion of exports.
The growing trade war prompted the International Monetary Fund on Tuesday to cut its global economic growth forecasts for 2018 and 2019.
Mr Trump renewed his charge that past presidents Obama and George W. Bush "let China get out of control" through the massive U.S. imports of manufactured goods. The IMF also lowered estimates for the United States and the global economy as a whole.