Although the US is still running a trade deficit with China, today's NYT reports that overall China's trade with the entire world is very close to being balanced. In other words, even though China exports more to the US than it imports from the US, China imports more from the rest of the world than it exports to the rest of the world. This is a big change from 2007, when China's trade surplus represented 10% of Chinese GDP.
What has happened to shrink China's trade surplus? The NYT article cites rising wages in China and increased transportation costs, both of which make Chinese exports less competitive. Also, the Chinese renminbi seems to be rising in value. The global recession did not exactly help China on the export front as well.