China and the United States have vastly different official estimates of the bilateral trade imbalance, which has been one of the main sources in bilateral trade friction gradually. Chinese figures show that China had a merchandise trade surplus of US$ 42.7 billion versus the United States in 2002, whereas the U.S. figures show that the U.S. had a merchandise trade deficit of US$ 103.1 billion versus China. Two margins was up to US$ 604 billion. Which set of figures is right? It turns out that neither side is completely accurate. In this paper, we analyze this problem from several aspects such as pricing method, re-exports trade in Hong Kong, service trade, processing trade, and provide more accurate estimate of imbalance figures.