Stark differences between the United States and China were on display at last Friday’s dialogue between their defence chiefs and top diplomats, but the meeting still raised hopes among Chinese experts that both sides would be able to progress in solving deep-rooted trade issues.

The security and diplomatic dialogue – attended by Chinese State Councillor Yang Jiechi, Defence Minister Wei Fenghe, US Secretary of State Michael Pompeo and Defence Secretary James Mattis – was a significant and positive step forward, they said.

Associate Professor Li Mingjiang of the S. Rajaratnam School of International Studies in Singapore said recent developments seem to signal that Beijing is prepared to make “significantly more concessions” on trade. “Some of those new concessions may, to some extent, pacify the Americans and satisfy their demands, but Washington must also be realistic in its expectations,” he said.