China US Photo: VCG

The intention of US officials to meet with their Chinese counterparts was seen as a positive signal, but the US need to thoroughly review its China policy and cancel trade tariffs to show its sincerity, Chinese observers said on Tuesday.

China's central bank governor Yi Gang and US Treasury Secretary Janet Yellen are reportedly set to hold talks on the sidelines of the G20 Summit in Bali to discuss global economic situation, and the outlook for US inflation and global economic growth, among other topics.

Yellen said that she hoped the US will engage in more intensive conversations with China about the Chinese economy, global macroeconomic conditions, and public health policies both in the US and China as a result of the meeting between the Chinese and US officials, Reuters reported.

The remarks by Yellen and the arranged meeting between Yi and Yellen will be significant, as it is important for top economic officials from the world's two largest economies to have open communication  channels to share information and learn more about each other's policy plans, experts said.

Yellen's remarks also came as IMF Managing Director Kristalina Georgieva warned on Saturday of the risks to the global economy from "the rivalry between China and the US", while describing tariffs imposed on Chinese goods under former US president Donald Trump as counterproductive, Reuters reported.

Economic relations between the world's two largest economies have hit a new low amid growing and reckless US technology export restrictions.

Chinese officials have urged the US side to change course, treat its trading partners including China correctly, seek common ground while shelving differences through dialogue and consultation.

"As the world's two largest economies, China and the US have the responsibility to ensure that macroeconomic policies are in the interests of the world, and being aware of each other's developments can strive to minimize noise and eliminate misunderstandings and manage their differences," Wang Yanhang, senior research fellow at the Chongyang Institute for Financial Studies, Renmin University of China, told the Global Times on Monday.

Prior to the G20 summit, Yellen called for stabilizing US relations with China in an interview with The New York Times on Saturday.

The recent remarks by high-level US economic officials have sent positive signals for communication after the previous Trump administration's strategy of pressuring China with a trade war has completely failed, Chen Jia, an independent analyst of international strategy, told the Global Times on Monday.

The irrational US policy toward China in recent years has not brought any benefits to the US - on the contrary, it has put the US economy in a state of stagflation with high inflation and anemic growth, which forced the Federal Reserve to raise interest rates at an excessive pace, further deepening domestic economic contradictions in the US and deepening the global financial market turmoil, Chen said.

"The tariff issue has been completely politicized. It is not a trade issue any more. So whether or not removing the tariffs becomes a litmus test for the sincerity of the US side, without removing the tariffs, we cannot say the US is sincere in seeking talks," He Weiwen, an executive council member of the China Society for World Trade Organization Studies, told the Global Times on Monday. 

In addition to tariffs, Chinese experts also urged the US to stop its reckless technology crackdown on Chinese companies.

"This is the premise for any consultations to take place. The US needs to review and change its China policy so as to deescalate bilateral tensions," He said.

The US has been denying China access to advanced semiconductors, citing so-called national security concerns. 

In early October, the US government announced a broad set of technology export controls, including a ban on shipments to China of certain semiconductor chips made anywhere in the world with US technology. But the US has so far been unable to persuade its allies to get on board and join in the curbs. 

"The so-called 'China threat' theory is completely made up and false. The premise of such a theory does not exist, China does not pose a threat to the US. It has much to do with the fact that the US is seeking world hegemony," He said.