China and the US are the twin engines of global economy growth. Bilateral trade binds the two economies together, and cooperation is the only reasonable choice for both countries. Trade frictions are natural in a constantly expanding relationship that extends into other sectors in the globalization process.

The contrast between a collapsing neo-liberalism of the west and the much-welcomed new development model espoused and practiced by China is not to be missed.

Shelving the TPP could create opportunity to accelerate the FTAAP, working in line with high-standard trade rules, committing to new international trade rules and basing the FTAAP on the next trade mode.

The US and major Western powers’ “political turn” brings both opportunities and challenges to China. The main challenge is the rise of trade and investment protectionism, resulting in increasing impediments to foreign trade and overseas investment. The main opportunity is that China may become the leader of international free trade earlier than anticipated, and China-led regional cooperation schemes, such as the RCEP, thus becomes more influential.

Globalization is always an evolving process, with inevitable ups and downs and not moving in a linear fashion. Despite populist reservations in the US and UK, the international community has become intertwined and interdependent, thanks to global free trade and investment. Cooperation to tackle global challenges will continue while more efforts will address the “global governance deficiency” in promoting social justice and fairness such the widening gap between rich and poor both domestically and among nations.

The combined effects of globalization and technological change caused “deindustrialization” across a wide swath of the United States. Deindustrialization is responsible for making good paying manufacturing jobs requiring low to medium skills scarce, eviscerating the middle class in certain regions, and stoking political resentment—a major issue for workers both in the U.S. and China.

In many Western democracies, this is a year of revolt against elites. The success of the Brexit campaign in Britain, Donald Trump’s unexpected capture of the Republican Party in the United States, and populist parties’ success in Germany and elsewhere strike many as heralding the end of an era.

Despite the current rash of nationalism and protectionism around the world, there is every reason to believe that the next high tide of globalization – thanks to the joint efforts of the international community – will bring greater and more inclusive fortune and felicity to humankind.

The lesson of Donald Trump and Brexit is that while elegant in theory, globalization suffers in practice. Those who worship at the altar of free trade – including me – must come to grips with this glaring disconnect.

China’s stock market and RMB exchange rate both took a hit, but these were obvious reactions to Britain’s surprise vote to leave the EU. This brand of populism will get a boost from the success of the Brexit “Leave” campaign, but the long-term global effects will take years to become clear.