China US Photo:VCG

As agreed on by Chinese Vice Premier He Lifeng and US Treasury Secretary Janet Yellen in July, the China-US economic working group held its first meeting via video link on Tuesday, said China's Ministry of Finance.

Chinese analysts said the meeting at the working level, the first in years, is a significant step in efforts by the two sides to manage their differences and return to a normal, rational track of communication during a precious time window.

Headed by vice-ministerial level finance officials, the two sides held in-depth, frank and constructive communications over macroeconomic situations and the policies of both countries and the world, and their bilateral economic ties, China's Finance Ministry said in a statement on its website on Tuesday.

The Chinese side expressed its concerns, while both sides agreed to maintain communications, read the statement.

Gao Lingyun, an expert from the Chinese Academy of Social Sciences in Beijing, told the Global Times that the first meeting of the working group is another step taken in the direction of implementing the top leaders' consensus of the two countries at the working level.

The two sides have the most common interests in the trade and economic sphere, and exchanges addressing economic and trade issues have become a stepping stone for improving bilateral economic ties, Gao said.

As there are too many political factors in bilateral ties, the holding of the first meeting demonstrated that the efforts in China-US exchanges are progressing, noted Gao. 

Zhang Monan, a deputy director of the Institute of American and European studies at the China Centre for International Economic Exchanges in Beijing, told the Global Times on Tuesday that the meeting is a significant step in resuming regular contact at the working level, noting that the last time the two sides held such talks was in 2016.

"China and the US had issues of common concerns in the field of the macro-economy, and the fact that a first talk happens in this field shows a desire by the two sides to manage their differences and control risks," Zhang said. "Without such a mechanism, one cannot address concerns raised by other side at the working level."

Experts noted that the Biden administration's basic position on China will not change, but the starting of this kind of communication mechanism shows a willingness to engage in pragmatic dialogue with China.

The meeting took place against the backdrop of the  continued US technology crackdown on China and a number of visits by officials from the two countries.

The Chinese Foreign Ministry announced on Tuesday that Wang Yi, a member of the Political Bureau of the Communist Party of China Central Committee and Chinese foreign minister, is scheduled to visit the US from October 26 to 28 at the invitation of the US Secretary of State Antony Blinken.

California Governor Gavin Newsom led a delegation and visited Shenzhen in South China's Guangdong Province on Tuesday.

After learning about bus electrification in Shenzhen and taking a test ride in a sport utility vehicle made by Chinese electric carmaker BYD, the governor said "he wants to have two of them," according to local media reports.

On October 18, China's Ministry of Commerce criticized the tightened US chip export restrictions on China, vowing to take necessary measures to maintain China's legitimate rights and interests.

The ban, set to take effect in the coming weeks, will limit exports of more advanced artificial intelligence chips, such as such as Nvidia's H800 and A800 products, to China.

In September, China and the US agreed to set up two working groups for economic and financial matters in what observers say is a major step that could help put the brake on a downward spiral in bilateral ties. The meetings will be held at different intervals to strengthen exchanges on economic and financial matters.