For Trump and Xi, there is only one way forward. Last year, the United States and China demonstrated they could inflict serious pain on each other through tariffs, technology controls, and rare earth restrictions, but neither could force the other to back down. The confrontation ended last October with a yearlong truce. With that truce ending, the meeting between President Trump and President Xi Jinping opens a new chapter that could be pivotal for U.S.-China relations.

Both superpowers now possess unrivaled advantages the other struggles to match. America has unrivaled financial power, leads in semiconductor design, chip manufacturing equipment, and advanced AI models. China is the world's largest exporter, dominates rare-earth elements, critical minerals, high-powered magnets, and provides cheap open-weight AI models rapidly adopted globally.

Building a lasting détente could prove as consequential as Cold War coexistence. U.S.-Soviet trade was minimal, but Chinese and American economies are deeply interdependent. Decoupling is neither possible nor desirable. What Washington and Beijing face is mutually assured economic disruption—the logic of détente that recognizes continued escalation would be too costly.

Many Chinese and American citizens are tiring of confrontation. Young Americans favor cooperation, and in China, people are weary of the economy geared toward national strength rather than meeting needs. Mr. Xi seeks calm before next year's Communist Party Congress, while Mr. Trump eyes agricultural trade deals ahead of midterm elections.