After playing a game of chicken over trade for a year that has rattled money markets and threatened the health of the global economy which until recently looked promising, Chinese and US officials have now found themselves in a very tough spot.



Both of their economies are flashing disturbing warning signs, with the US economy facing risks of sliding into another recession and the Chinese economy growing at the slowest pace in decades.



Perhaps that was the chief reason behind a truce reached by the two governments earlier this month to hold off escalation in their tit-for-tat trade war.



They may have finally realized that they need to take a breath and tackle pressing issues at home first.



But how they go about their jobs in stabilizing the world's two largest economies is a different story.



In fact, the contrast in their reactions could not be starker, with US officials resorting to internal finger-pointing and chaos, while their Chinese counterparts striving for calm and stability.



Reacting to a stock rout that has led to some of the worst performances in US stocks in decades, US President Donald Trump repeatedly attacked the US Federal Reserve Chairman Jerome Powell in a series of tweets and reportedly sought ways for ousting the latter. Trump suggests that the Fed's decision to raise interest rates is to blame for the bruising stock sell-off.



Then came an odd statement from US Treasury Secretary Steven Mnuchin, who as a former investment banker is supposed to know what the market needs in such times.



In an apparent bid to calm jittery investors, Mnuchin said in the Sunday statement that he had called the heads of the six largest banks in the US and had been told that the banks have "ample liquidity."



That had many in Wall Street scratching their heads as to what prompted Mnuchin to release such a statement, which is often seen in the financial crisis like in 2008. Some say Mnuchin might just have made an honest mistake, while others believe there might be a deeper problem.



Needless to say, Wall Street did not take that well, as the stock sell-off continued on Monday, leading major stock indexes into or near bear market territory.



If it is a bit chaotic and unhinged in the US, things are a bit more tight and predictable on the other side of the Pacific Ocean.



Facing rising downward pressure, Chinese leaders have convened a series of policymaking sessions.



From a meeting of the Political Bureau of the Communist Party of China Central Committee to a high-level occasion to mark the 40th Anniversary of China's reform and opening-up to the Central Economic Work Conference, Chinese leaders have stressed policy continuity and sought to inject a sense of calm into the market.



The meetings all stroke one theme: China will work to stabilize economic growth, while adhering to previously announced reform and opening policies.



And to boost growth, China will take further measures such as reducing taxes and cutting administrative fees and maintaining active fiscal and prudent monetary policies - conventional tools in an economic slowdown. Following these tone-setting meetings, different levels of governments have moved swiftly to map out their own responses.



While Chinese officials still need to follow through with their policy tools, which is the key part of the process, the Chinese market has so far remained relatively calm.



It remains to be seen which approach will be more effective given the challenges ahead, but it is fair to say that markets hate chaos and uncertainty more than anything else.