After the U.S.-Sino Comprehensive Economic Dialogue, trade issues are alienating not only China and America’s NATO allies – but its NAFTA partners, Canada and Mexico.

The first China-U.S. Comprehensive Economic Dialogue yielded no tangible results. But the two powers have plenty of room for agreement – if they can put their sense of exceptionalism aside.

Two major American car manufacturers, Ford Motor Company and Tesla, are moving ahead with plans in China that seem a direct challenge to President Donald Trump’s crusade to keep American manufacturing jobs in the U.S. Surprisingly, the companies seem to have met little resistance from the administration thus far.

As long as China continues to carry out its export-driven economic growth model through its strong state capitalism, then the U.S. business community will still have to face trade protectionism through non-tariff barriers, industrial policy, subsidies, and currency manipulation.

Outcomes fromU.S.-China trade talks that were recently announced ignored the major structural issues facing U.S.-China economic relations. While a trade deal was produced, the major point of contention between the two countries, that they practice deeply divergent forms of capitalism, was ignored. In order to truly make progress on trade between the U.S. and China mutual understanding of the different dynamics driving the two forms of capitalism is needed.

Integration, not isolation, is the key to sustainable development in a world bound ever closely together by information and transportation networks. While trade with the U.S. remains strong, a post-TPP world will require Chile to build bridges with TPP stakeholders and new partners, such as China.

China’s experiments with industrial and financial policies may end up providing emerging economies with valuable insight into how to avoid the middle-income trap. But, for a US concerned with its eroding manufacturing base, the lesson is already apparent.

In March, two leading members of the Trump administration announced that China’s ZTE Corporation would pay the largest criminal fine in U.S. sanctions history. As long as North Korea’s military program tops the U.S. foreign policy agenda with China, economic sanctions aimed at punishing Chinese corporations may take a back seat to reaching a goal of increased Chinese pressure on the North Korean regime.

The Mar-a-Lago meeting between presidents Trump and Xi has started to generate concrete results, the recently announced trade agreement between the countries shows. However, the transactional approach risks leading to an impasse; it needs to be buttressed by more fundamental deals, such as the US-China Bilateral Investment Treaty.

China-US economic and trade relations should look beyond the 100-day plan. It will mutually benefit China and the US to deepen economic, industrial and trade cooperation, and push for closer and deeper cooperation in the high-tech markets, while gradually eliminating investment barriers.