Wrong. If the federal government balanced its budget, there wouldn't be any Treasury Bonds for the Chinese to buy! Don't blame a trade imbalance for something it did not create.
Your defense of trade deficits is insufficient. Trade deficits cause job losses here with the corresponding loss of taxes, bankruptcy, and unemployment costs to government. This country did well economically when we were an exporting country as today other exporting countries are.
We have to produce more of what we import. It is the only path to prosperity.