Since the 1970s, China and the United States have been able to carve out a strategic framework for collaboration, competition and cooperation. The result is that stability and growth have generally been guaranteed despite the periodic ups and downs. This needs to happen again.

Presidents Xi Jinping and Joseph Biden met for over three hours in Bali in advance of the G-20 Summit. The discussion was another frank exchange that aired the differences between the two sides, and it also succeeded in establishing some more regularized working level exchanges between the two governments.

With a White House and Senate held by Democrats and the House of Representatives held by Republicans, more complexity may come to China-U.S. relations. A change in House leadership may bring out the China hawks in greater numbers.

U.S.-China relations seemingly take place between two inevitable foes, descending each week over a multitude of rows ranging from economic to ideological. However, the imminent threat that each side believes the other to be is an exaggeration of manageable competition between two powerful and influential nations.

On the afternoon of 14 November local time, President Xi Jinping had a meeting with U.S. President Joe Biden in Bali, Indonesia. The two presidents had a candid and in-depth exchange of views on issues of strategic importance in China-U.S. relations and on major global and regional issues.

For those European countries still clinging to confrontation, German Chancellor Olaf Scholz provided a wake-up call. As we promote common interests and uphold multilateralism, we are sure to see more pragmatic cooperation in the future.

China’s next move is the subject of much speculation and worry for observers and enemies. The current conditions of today’s geopolitical stage should lead China towards its Southeast Asian neighbors in what may be its next international outreach campaign.

As one of America’s key European allies, Germany is exploring its own version of strategic autonomy — a low-profile and pragmatic version — not only for itself but also on behalf of Europe. German Chancellor Olaf Scholz’s recent trip to China was a notable touchstone.

There are growing indications that Washington has embraced a new era of great power competition with China, and the recent security documents released by the Pentagon identified China as the most significant threat to America. But without a diplomatic breakthrough between the two nations, it’s possible the superpowers are heading towards a “New Cold War,” which is threatening decades of peace and prosperity in the Indo-Pacific.

Scholz’s visit helps set the narrative straight. China and Europe should set their own agenda, without the heavy hand of a third party. They should be guided by their hopes for the future, not their fears.