Chinese leader Xi Jinping promised to work with incoming President Donald Trump in his last meeting with current American leader Joe Biden.
The two met on Saturday on the sidelines of the annual Asia-Pacific Economic Cooperation (Apec) summit in Peru where they acknowledged the “ups and downs” of the relationship during Biden's four years in office.
But both highlighted progress in reducing tensions on issues such as trade with Taiwan.
Analysts say US-China relations could worsen if Trump returns to office in two months, driven by factors including a promise to raise tariffs on Chinese goods.
The president-elect has promised 60% tariffs on all goods from China. He also appointed prominent China hawks to top foreign and defense positions.
During his first term, Trump called China a “strategic competitor”. Relations worsened when the former president referred to Covid as the “Chinese virus” during the pandemic.
Speaking on Saturday at a meeting at his hotel in Lima, China's president said Beijing's goal of stable relations with Washington would remain unchanged.
“China is ready to work with the new US administration to maintain communication, expand cooperation and manage tensions,” Xi said.
Biden said that the strategic competition between the two world powers should not go to war.
“Our two countries cannot allow any of this competition to go astray. That is our responsibility and in the last four years I think we have shown that it is possible to have this relationship,” he said.
Biden's time in office saw an upturn in relations with China, including The spy balloon saga and the display of fireworks by the Chinese military around Taiwan caused by the visit of the top US official.
China says its claim to the island is a red line.
However, the Biden administration intended to “responsibly manage” the conflict with Beijing after Trump's first term.
Beijing may be more concerned about the unpredictability of the president-elect, analysts say.
“The Chinese are ready to negotiate and cooperate, and perhaps they hope to have an early meeting with the Trump team to discuss the possibilities,” said Bonnie Glaser, executive director of the German Marshall Fund's Indo-Pacific Program.
“At the same time, however, they are ready to retaliate if Trump insists on imposing higher tariffs on China.”
He added that China may be “concerned that it does not have credible channels to influence Trump's policy”.
Biden on Saturday admitted that there had always been disagreements with Xi but added that the discussions between him and the Chinese leader had been “frank” and “innocent”.
The pair have had three face-to-face meetings during Biden's time in the White House, including a landmark summit last year in San Francisco where the two sides reached deals on drugs and climate change.
But Biden's White House also continued the Trump-era tax. His government introduced duties in May targeting China's electric cars, solar panels and metals.
He also strengthened defense alliances across Asia and the Pacific to counter China's growing assertiveness in the region. The outgoing president also said that the US will defend Taiwan if it is attacked by China.
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