The meeting of presidents Xi Jinping and Joe Biden in Bali may be the first step toward restoring normal bilateral ties between China and the United States. The leaders discussed their respective red lines and agreed to resume talks on several topics. But a trust deficit remains.

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.

The warm smiles of presidents Xi Jinping and Joe Biden as they shook hands in Bali showed that the two countries are not intractable rivals. They may never be free of competition and struggle, but by using the meeting as a compass they can achieve good things for themselves and the world.

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.

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.

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.

With the terms “invest,” “align” and “compete,” America’s intent is clear — and it is not benign. The National Security Strategy does not hide the fact that the U.S. wants to suppress China and maintain its hegemony.

Impacts of the United States’ ban of semiconductor exports to China have yet to be fully understood. Beijing must scramble to discover new ways to access the most critical supply chain.

News headlines described the Biden administration’s latest semiconductor-focused sanctions on China as sheer annihilation, which could ‘decapitate’ the overall semiconductor industry.