Japan, China to Spur Moves to Reinstate Currency Swap Pact

Beijing, Aug. 31 (Jiji Press)--Senior finance officials from Japan and China agreed Friday to accelerate bilateral cooperation, including efforts to reinstate a currency swap pact between the two countries. Also at the regular financial dialogue, held in Beijing, the two sides affirmed their intentions to resist protectionist moves. Japan and China demonstrated their economic cooperation, ahead of a bilateral summit that may be held in October, sources familiar with the talks said. Japanese Prime Minister Shinzo Abe is exploring the possibility of visiting China that month. Participants at the financial dialogue included Japanese Finance Minister Taro Aso and his Chinese counterpart, Liu Kun. At their meeting in May, Abe and Chinese Premier Li Keqiang agreed to reinstate the bilateral current swap pact at an early date. The pact allows yen to be swapped for yuan and vice versa in times of a financial crisis, to keep the financial system stable. At Friday's meeting, participants had detailed discussions on the pact so that a final decision to bring it back will be made at the expected summit. The two sides confirmed that they will work to maintain and promote a multilateral trading system based on free and open rules. A joint statement released after the meeting said that "protectionism cannot be beneficial for any country." They also discussed the economic situations in Japan and China, and issues related to tax reforms and public debt management. "The atmosphere in the dialogue was great, and we had constructive and active discussions," Aso told a press conference after the session, pointing to the Chinese side's deep interest in Japan's policies. The results of a joint pension system research, which was decided at the previous bilateral financial dialogue, held in Yokohama, Kanagawa Prefecture, south of Tokyo, in May 2017, were reported at Friday's meeting. The two sides agreed to carry on studies on fiscal reforms and other issues of common interest. The next financial dialogue will be held in Japan next year. END