Legendary investors Warren Buffett and Charlie Munger urged the United States and China to resolve their escalating tensions on Saturday, claiming the superpowers had a "mutual interest" in maintaining their current level of cooperation.

The two biggest economies in the world have repeatedly clashed, and there are few indications that they will reconcile anytime soon.

Trade between the US and China has skyrocketed with a total of $690.6 billion in imports and exports in 2022, as per official figures.

Some commentators have pondered if both nations can afford to separate from one another given the escalating tensions and the potential repercussions for the global economy.

The billionaire power couple argued during a question-and-answer session at Berkshire Hathaway's annual meeting in Omaha that the United States and China are interdependent.

Apple as a model

Munger, for his part, compared tech giant Apple to a shining example of how Sino-American relations ought to be, calling the escalating tensions "stupid, stupid, stupid."

"If there’s one thing we should do is get along with China, and have lots of free trade with China … it’s in our mutual interest," Munger stated.

The 99-year-old advised that any attempts by one side to rile the other should be met "with reciprocal kindness."

Buffett, the 92-year-old "Oracle of Omaha," who has been revered for decades for his market and investing guidance, asserted that both nations "have to get along with each other."

"Part of it is how far you can judge how far you can push the other guy without them reacting," Buffett said. "The alternative will drive them both into destruction and increase the probability of something going wrong."

Buffett compared the tense situation between the United States and China to the Cold War when America faced up against the Soviet Union under the prospect of a nuclear exchange that would result in "mutually assured destruction."

That policy "kept a lot of things from happening...but Cuba was a close call," Buffett said.

"It's imperative that both US and China understand what the game is and both can't push too hard, but both can prosper," he concluded.

This comes as the new report of the 2023 Heritage Foundation - a US nonpartisan think tank - outlined that the US has, indeed, entered a new Cold War with Beijing, proposing a defense plan to face a new threat.

In late March, the Biden administration’s top Asia advisor, Kurt Campbell, claimed that attempts to protect ties between the US and China from deteriorating severely had so far been fruitless.

Tensions mounted again in April between the two countries after Taiwanese President Tsai Ing-wen made a provocative visit to the US and was received by House Speaker Kevin McCarthy, prompting China to condemn the talks and stage three days of military drills around Taiwan.

Read more: US unprepared for potential war with China: Study