The eighth China-US Strategic and Economic Dialogue in Beijing on June 6 to 7 will be a great opportunity to show not just the next US administration, but also the world, that the two largest economies are expanding cooperation and effectively managing their differences.

There have been too many headlines, too much attention and obsession on a few thorny issues such as the maritime territorial disputes in the South China Sea or on the issue of what the United States claims to be freedom of navigation. The action/reaction spiral that has emerged on these issues reflects a lack of effective management of the differences between the two countries, despite some positive confidence building measures on air and sea encounters.

At the S&ED, China and the US need to find away to improve their dynamic so there is a downward spiral of tensions and an upward spiral of cooperation.