Only by totally abandoning the current growth model, which relies on credit investment and the real estate industry, can China’s economy escape the dangers posed by the potentially risky debts on its commercial banks’ financial sheets that may exceed $1.3 trillion. The majority of bank loans have flown into the real estate market, which will become instantly volatile if and when housing prices begin to slide.

China’s economy will constantly have to overcome contradictions and problems, as it explores new avenues for economic growth in a period of recurring volatility. Current indicators are positive, but as the economy steadies itself for the long term, it will fluctuate and experience reverses during the short term.

Ultimately, the regional order is shaped by economic relations. The current cooperation structure accommodates the interests and comfort levels of multiple parties, and opens up new space for compromise and dynamic balance through mutual adaptation and acceptance. China has gained invaluable experience in neighborhood diplomacy, and the country’s neighbors have gradually gotten used to China's rise.

Republicans and Democrats alike have taken aim at both China and the Trans-Pacific Partnership, holding them up as the scourge of beleaguered American workers. America needs to save more and consume less, while China needs to save less and consume more. To succeed, both countries will have to overcome entrenched mindsets.

The US-China Business Council writes that instead of building protectionist walls, the U.S. should boost exports to China—the fastest growing market in the world—by pursuing policies that reduce the trade and market access barriers that China uses to keep out American manufactured goods, services, and agriculture products. The U.S. should also take steps to boost worker education and training, and improve competitiveness to ensure that America continues to have a strong economy.

Donald Trump’s supposed 45 percent tariff on Chinese imports would punish American consumers, violate international trade rules, and ignite a trade war. However, given when a Chinese company pays top dollar to acquire a public U.S. company, shareholders generally receive cash in excess of the stock price, which goes right to the pockets of U.S. households and retirees.

The U.S. Treasury department has released a report on currency policy and trade between its major partners, selectively picking rules from the IMF’s list of currency manipulations actions to its advantage. To fix the porous global currency system, the Obama Administration should sit down with China and re-write multilateral rules and create a diverse supply of safe globally traded assets.

Through new policies like the lowest customs threshold, intermediary responsibility, privacy, intellectual property rights, consumer protection, electronic signature and settlement of issues, the evolving global trade framework can promote interconnection and interflow in information, trade and industry so as to bring a new boom via the new round of trade globalization talks.

Increasing US technology and equipment exports to China would not only helping Chinese industrial upgrading, but also help US production in a time of sliding Chinese demand for US goods. Finalizing a bilateral investment treaty and closer collaboration between both governments and business to clinch more PPP projects in US infrastructure investments also would benefit both countries.

Beijing does not expect the Obama administration to enthusiastically support this initiative or the Asian Infrastructure Investment Bank, but it does hope that the American side can be serious about the tremendous potential for the two countries to formulate a global development partnership.