The storm clouds have lifted. Only weeks ago, it seemed possible that the US and China could slide into some form of trade war. Not any more.
Beijing has signalled that it is likely to strengthen its currency and Washington has withdrawn, for now, its threat to label China a currency manipulator. China, meanwhile, is edging towards approving some form of sanctions on Iran. None of these arguments has been resolved, of course, but both countries have bought themselves time.
Yet while the Obama administration might be pleased that its efforts to engage China are starting to bear fruit, it is worth asking what is the best way to exert pressure on China. Recent months have shown, after all, that a debt-ridden Washington does not have a great deal of direct leverage over a newly confident Beijing.