Managed Rivalry Or Strategic Reset Between China And The U.S.?

James Durso

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The Chinese are nothing if not persistent.

In December 2025, Wu Xinbo, Dean, Institute of International Studies, Fudan University and advisor to the Chinese Ministry of Foreign Affairs, used the pages of Foreign Affairs, to propose a “grand bargain” between China and America.

Wu argues that U.S.–China relations have reached a pivotal moment that requires a comprehensive reset to prevent long?term confrontation. He proposes starting with economic cooperation—easing U.S. technology restrictions and increasing Chinese market access—while managing geopolitical tensions in Asia and exercising mutual restraint over Taiwan. He believes both countries must clarify their roles in the international order and accept coexistence to stabilize the relationship.