Australia’s alignment to the West and its trade barriers with China has entrenched tensions between the two Asian countries.

Will the Asia-Pacific chart a course forward? Or will it return to the status quo of the Cold War? Mentality matters, and the old thinking inevitably leads to misjudgments. The U.S. sees China through the same prism it once saw the Soviet Union but neglects the fundamental differences of two hugely different ages.

The historic meeting between Joe Biden and Xi Jinping was short on resolutions, but gave promise for those hoping for a toned down approach to the bilateral tensions that have plagued the two nations since the middle of the 2010s.

This year’s G20 summit was haunted by the war in Ukraine, changing the complexion of nearly all interactions at the meeting. A sober assessment of the situation between Taiwan and China leaves much room for speculation about how an escalated conflict there might affect the world’s powers at large.

Despite tensions between the U.S. and China on the economic and political fronts, leaders from both countries found some common ground during their recent meeting in Bali. Presidents Biden and Xi have reiterated their commitment to work together to address transnational challenges, avoid conflict with each other, and maintain open communication.

ASEAN toes a delicate balancing act between China and the United States, and the latest ASEAN Summit demonstrates the complexities involved in steering clear of unnecessary tensions.

Though Biden and Xi’s first face-to-face meeting since Biden’s presidential term began came with offers of civility and friendship, there remains much work to be done if the U.S.-China rivalry will be toned down within Biden’s first term.

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.

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.