The loss of momentum for the Trans-Pacific Partners agreement has diminished the US’ standing as a global power, and taken the wind out of the sails of President Obama’s Pivot to Asia strategy. The result is a brighter prospect for a more regional partnership and China’s push to establish a Free Trade Area of the Asia-Pacific (FTAAP).

As the president-elect makes bold statements and takes symbolic actions relevant to US-Sino relations, perhaps a bit of folklore suggests how to think about wise policy actions.

With the election of Donald Trump to the White House, the Obama Administration has finally accepted the inevitable and has announced that it will cease efforts to push the Trans Pacific Partnership (TPP) forward in the waning days of the Lame Duck session. Over the long term, Washington will need to re-assert its trade presence in the Asia-Pacific region. The supply chains are too interwoven and interdependent for the U.S. to go at it alone, despite the isolationist rhetoric emanating from the U.S. election.

For China and the United States, a new type of economic and trade relationship with each other is in the best interest of the two major powers, and they should work towards this end. That will require Washington to view the new TTP through the lens of its best economic interests, and join China in creating the world’s largest free-trade zone by around 2030.

Whether or not the struggling talks produce an agreement soon, the US and China do not need to be defensive about the TPP. Instead, they should open an obstruction-free channel for dialogue, through which both countries can use anticipatory diplomacy to enhance mutual trust.

Economic and security structures in the Asia-Pacific region have shown a trend of changes towards the “dual-track structure” between U.S.-led allies and Chinese-led allies. It is imperative for China and the U.S. to optimize strengthen their complementary features, rather than maintain a bipolar and competitive nature, so as to ensure development and security in the Asia-Pacific region. Zhai Kun provides four suggestions to achieve this.

The Third Session of the 12th National People’s Congress delivered a “Report on the Work of the Government.” Notable advancement was made in conducting economic diplomacy with the Silk Road Economic Belt, 21st Century Maritime Silk Road initiatives, the Asian Infrastructure Investment Bank, and Silk Road Fund. More significant openness to the outside world and expanded economic diplomacy are priorities of diplomatic work in 2015.

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.

In 2015, ASEAN will continue to pursue its priority objective of creating an ASEAN community. As China sees it, the creation of a China-ASEAN community with a shared destiny now stands at a new historical starting point. China will advance and be proactive in its diplomacy. What will ASEAN choose?

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.