Despite obstacles, the White House continues to push preferential trade deals in Asia and Europe. But neither can reverse the erosion of U.S. innovation and in Asia Pacific the proposed pact is more likely to divide than unify the region.

Asian states will look at potential partners around the Pacific Rim and determine if they are ready to walk the walk or simply talk the talk. So far the lesson of Canada and Australia is that walking the walk requires sustained, strategic commitment, but has a big potential payoff. Australia has been taking concrete steps to solidify its relationship with Asia; Canada has been talking about it, and is only now starting to put into place an engagement program with substance.

As the two largest economies, China and the U.S. are trying to formulate a new-type of major-country relationship. The establishment of a free trade area should be an integral part of such relationship. This will be a challenging mission, but the rewards will be tremendous.

While the TPP is not attractive to several APEC economies because of its U.S. dominance, the proposed FTAAP, which embraces all of the 21 APEC economies, is meant to be an all-inclusive, all-win trade initiative that represents the largest single trade liberalization in history.

In 2013, the Sino-US relations ended with concern over strategic mistrust. In 2014, bilateral relations were characterized by a sense of optimism. While bilateral trust may endure through the Obama era, challenges will ensue thereafter.

Xi-Obama meetings following the APEC summit helped spur new topics and commitments to bilateral cooperation, most notably with the creation of an impactful new climate treaty. Yu Xiang discusses new international issues – responding to Ebola, IS, and a military reporting mechanism – for extending Sino-U.S. cooperation.

The initiatives and enormous investments turned the APEC meeting in Beijing from a “talk shop” to one of action. Han Liqun stresses that all APEC member economies should be fully confident in building an open and liberal economic and trade environment in the Asia-Pacific.

China is the leading advocate for progress in the form of a “feasibility study” on an inclusive new regional trade agreement, the FTAAP. Concerned that this will detract from U.S. regional interests, the FTAAP ironically has provided impetus for the completion of the U.S.-led TPP proposal.

He Weiwen dislodges the notion that the FTAAP is inherently in opposition to the TPP by discussing APEC plans to phase out regional free trade agreements in favor of creating a singular FTAAP; this more inclusive agreement which would serve as the “greatest common denominator” for standards and investment treaties in the Asian Pacific.

The November 11 bilateral summit between Presidents Xi Jinping and Barack Obama in Beijing was a welcome step forward in Sino-American relations. While some tensions were evident behind the scenes and during the two leaders’ joint press conference, on balance the two sides accomplished a lot in one day of summitry.