The deadline for the Phase One Trade Agreement, which was meant to be the first step in defusing the multiyear trade war between China and the U.S., has passed. Its quiet ending speaks volumes about the future of China-U.S. relations.

China’s regulatory practices defy Western ideals, but show alternative methods of tackling income inequality and social divides. The three most recent crackdowns in education, fintech, and real estate show how China approaches ‘common prosperity.’

By starting and sustaining a tech war against China, Washington has placed itself on the wrong side of history. Like its trade war, the battle in the high-technology sector will turn out to be difficult to win.

The unfortunate Japanese experience in boosting domestic demand and setting trade policy can be drawn upon today. Hopefully, China will not repeat the mistakes of Japan. Frictions between China and the United States can be addressed if they are willing to meet each other halfway.

Doing the math, we find that Chinese GDP looks better and the United States looks worse for last year than has been reported in some quarters. The U.S. is paying a steep price with its bloated money supply. Now it’s facing interest rate hikes to control inflation.

China’s digital yuan soft launched during the Beijing Winter Olympics, ushering in a new era of financial institutions. Already a leader in digital payment infrastructure, China’s ambition to solidify the digital yuan’s use will change how an already robust ecosystem operates.

Recently, the IMF downgraded global growth prospects, due to projected slowdowns in the U.S. and China. Negative prospects could be overcome with the right policies, such as trade cooperation. The current ones support stagflation.

Washington intends to shed its reliance on multilateral mechanisms and form a new economic framework based on bilateral consultations. The IPEF is more of a contract aimed at solving particular issues than an agreement to ratchet up economic integration. And, of course, it aims to dent China’s influence.

In China’s new development stage, the growth cycle needs to address the structural issues of economic growth and take into full consideration the issues of group equity, intergenerational continuity and climate inclusion.

China has taken a path toward common prosperity that is different from that of the United States. It hopes to explore a Chinese solution characterized by modest, sustainable lifestyles that avoiding the overconsumption of the West. The race has just begun.