In 2017, President Trump’s approach to China see-sawed between praise for Chinese President Xi Jinping and complaints that the country is a currency manipulator and “revisionist power.” A year after the 45th president's inauguration, relations with China seem to be as muddled as ever.

As Trump embarks on his second year in office, how should U.S. policy toward China change?  Asia Society Policy Institute Diplomat in Residence Daniel Russel says that focus should return to strategic engagement with a country who plays a central role in nearly every issue concerning the region.

“Whether the administration finds a formula for viewing and engaging with China that is not branding China as an adversary or enemy, but instead is reconciling the different components of our relationship with China,” he said during an Asia Society conversation on Tuesday.

Russel, who served as President Obama's point person for Asia, highlighted the importance of balancing cooperation with China without sacrificing American values in dealing with issues like trade, freedom of navigation, and the threat of North Korea’s nuclear program.

"[This would allow] us to deal directly, effectively, and honestly, with our very significant differences and avoid the kind of strategic Cold War rivalry or struggle that brings out the worst in both of us.”

Russel appeared alongside Asia Society Policy Institute Vice President Wendy Cutler in a conversation moderated by Asia Society Policy Institute Managing Director Debra Eisenman.

Watch the complete conversation below: