Opinion | A Sino-US relationship that competes on values

A new phase of Sino-American relations is poised to begin, now that Xi Jinping has been confirmed as China's next leader and Barack Obama re-elected US president.

In both countries, the debate about foreign policy options has been robust, particularly on the bilateral relationship. This is the time to reflect on the past and look ahead to the future.

The transfer of power has been smooth for both, with no noticeable change in the conduct of either's foreign policy. Over the past year, China has advocated a win-win relationship of mutual respect between a superpower and an emerging power. It was the approach Xi outlined on his visit to the US last February, and reiterated at November's party congress. Meanwhile, Obama introduced the policy of rebalancing in his first term and has been taking steps to effect this "pivot" towards Asia.

The Sino-US relationship has never been more important, and hope is high that Obama and the new team of Xi and Li Keqiang will do more to forge a relationship of co-operation, rather than confrontation.

The relationship has been highly transparent so far, and we've not seen the kind of misunderstanding, friction or behaviour to "test the water" so common with new administrations. But the lack of strategic trust remains a huge challenge for both.

From Beijing's standpoint, Washington's rebalancing strategy has brought uncertainty to the region. The disputes over Scarborough Shoal and the Diaoyu Islands, as well other rows between China and its neighbours, can be understood in this context. America's determination to be a key player in Asian security has emboldened regional countries to lean on it. The result is, when involved in a row with China, these countries have become less likely to compromise.