• Should not move towards confrontation because of differences
• Artificial decoupling is moving against the tide and losses outweigh gains
• The need for cooperation is not weakened, but stronger at this time
• No conflict between China and US is the most important peace dividend for the world
• Both sides should make use of foreign affairs, economy, finance to bolster relations

All this talk is mostly still just for show as both sides are not going to actually give in to make any real progress in strengthening ties. A lot of the relationship between the two countries is just for show. And while China has held strong leverage in the past, their recent economic struggles are not making it easy to portray such a strong front. Not only that, the outlook – especially on the demographics front in the next few decades – is one that could see China have to pick their battles wisely.

This article was written by Justin Low at www.forexlive.com.