Japanese Prime Minister’s visit to China is expected to restart currency swap

2018-10-26 0 Comments 130 Views 0 Thumb

Japanese Prime Minister visits China after a lapse of seven years. The two countries are expected to restart the currency swap agreement.

China and Japan forty and not confuse to join hands in the third-party market

In addition to the highly regarded third-party market cooperation, there will be a very broad space for cooperation between China and Japan in areas such as information technology, artificial intelligence, technological innovation, and response to the aging crisis.

"The blue sky of Haneda Airport. I have not officially visited China for seven years. Although there are various problems, it is precisely because of this that the heads should be more open-minded and speak out frankly. This opportunity, I want to Japan-China relations have advanced to a new stage." At noon on the 25th local time, Japanese Prime Minister Shinzo Abe updated his Twitter before boarding. After more than two hours, Abe’s special plane landed smoothly at the airport in Beijing.

This is the first official visit of Japan to China after a lapse of seven years.

Chinese Foreign Ministry spokesperson Hua Chunying said at a regular press conference on the 24th that the visit is also an important node of the 40th anniversary of the conclusion of the Sino-Japanese Treaty of Peace and Friendship. During Prime Minister Abe’s visit to China, he will exchange views with Chinese leaders on improving Sino-Japanese relations and issues of international concern.

According to the First Financial Reporter, on the evening of the 25th, a reception will be held to commemorate the 40th anniversary of the conclusion of the China-Japan Treaty of Peace and Friendship. The first China-Japan third-party market cooperation forum will be held on the 26th. This time, about 500 Japanese business leaders accompanied Abe to visit China.

For Ueda Minyu, the general representative of Japan AGC Group (formerly Asahi Glass Group), last night was his third time in the Great Hall of the People. This time, he is also a member of the Japanese company executive delegation accompanying Abe's visit to China. "The first two times, (I) is the representative of the Japanese economic community visiting China here to communicate with Premier Li Keqiang. I really feel the warmth of Japan-China relations, and now ushered in a big step forward." Ueda told Yuda First Financial Reporter.

The Chinese experts interviewed by the First Financial Journal also believe that Abe’s visit will help China and Japan to carry out pragmatic cooperation, especially in the economic and trade fields, and will promote new changes in China-Japan relations on the basis of returning to the right track. development of.

Expect to restart currency swap agreement

"(This visit) is conducive to promoting bilateral relations between China and Japan, and it is of positive significance to enterprises." In an interview with the First Financial News reporter, the director of the Japan Trade Promotion Agency (JETRO) Shanghai Office, Xiao Li Dao Ming, was very excited to say that the Japanese Prime Minister’s visit to China after seven years is of great significance.

Xiao Li Daoming said that about 1000 people from China and Japan participated in the first Sino-Japanese third-party market cooperation forum. The forum will cover various topics such as transportation logistics, energy environment, Internet of things, medical health, etc. The participating enterprises are from steel and automobiles. , finance, logistics, robotics and other industries.

“There are many Japanese companies in Shanghai who have already flown to Beijing in advance to participate in the activities of the Prime Minister’s visit to China.” Xiao Li Dao Ming said.

According to Chen Yan, executive director of the Japan Enterprise (China) Research Institute, the 500 Japanese business leaders gathered in China, which is a small scale. "One thousand entrepreneurs from China and Japan have jointly discussed cooperation in third-party markets. It is a very big move in the economic and trade field between China and Japan, and it is rare in the history of economic and trade cooperation between China and other countries."

The AGC Group has been intensively engaged in the fields of glass, electronics, chemistry and industrial ceramics. It is a typical Japanese manufacturing company. Ueda Minyu told the First Financial Reporter that manufacturing is the foundation of national development. Japan and China have been working together for 40 years and have gradually explored the complementary road of manufacturing. "As a Japanese company, AGC is willing to use the world's most advanced technology and innovation to help China's growth."

Regarding the media's questions about "China and Japan's development in the third country market", China's Ministry of Commerce spokesperson Gao Feng said at the regular press conference on the 25th that both the Chinese and Japanese governments and enterprises have shown strong performance. Willingness to cooperate in third-party markets. Gao said that China and Japan have relatively strong economic complementarities and a solid foundation for cooperation. Thanks to the joint efforts of both sides, the cooperation between China and Japan in the third-party market has become a new growth point for the development of Sino-Japanese economic and trade relations under the new situation, opening up a new path for pragmatic cooperation between the two countries.

According to previous reports from the Japanese media, China and Japan are expected to restart the currency swap agreement during Abe’s visit to China. In fact, the plans for China and Japan to set aside direct settlement of the US dollar have been in existence for a long time. The Sino-Japanese bilateral currency swap was originally launched in March 2002 as part of the Chiang Mai Initiative.

According to Japanese media reports, the scale of the bilateral currency swap arrangement being negotiated between China and Japan is about 30 billion US dollars. "For the trade scale of about 300 billion US dollars per year between China and Japan, the previous $3 billion currency swap is slightly thin. Once there is trade or financial fluctuations, this amount is almost not enough for a company to use." Chen Yan is the first Financial reporters said, "This time China and Japan may have to expand the size of the currency swap by 10 times, which will make trade between China and Japan more emboldened and avoid the risk of fluctuations in the US dollar exchange rate. This will be the future trade between China and Japan. It is very important to travel."

Chen Zilei, vice president of the National Association of Japanese Economics and director of the Japan Center for Economic Research at the Shanghai University of International Business and Economics, also believes that given the close trade relationship between China and Japan, expanding the size of currency swaps is conducive to avoiding exchange rate risks and increasing the mutual currency of the two sides in economic and trade exchanges. The bigger role, "from the perspective of the current close relationship between China and Japan, it is more appropriate and reasonable."

In addition, the above experts believe that there will be a very broad space for cooperation between China and Japan in the fields of information technology (IT), artificial intelligence (AI), technological innovation, and response to the aging crisis.

In Chen Yan's view, IT, AI and IoT cooperation will be a highlight of China-Japan cooperation in the future. "Although China and Japan have had very good cooperation before, the Japanese mentality is that our (our) IT technology is more advanced than China. Today, China is in the field of data accumulation, or in autonomous driving, medical imaging, mobile payment, etc. The field is much ahead of Japan."

High level of interaction in the second half

In 2017, Sino-Japanese trade totaled US$302.99 billion, an increase of 10.1% over the previous year; Japan established 590 new companies in China, an increase of 2.4% over the previous year; China’s visitors to Japan reached 7.3 million, ranking third in Japan for three consecutive years. The first place for tourists. China has become Japan's largest trading partner, import source country and the second largest export market; Japan is China's second largest trading partner, export target country and import source country.

In addition, according to data from the Ministry of Commerce, as of the end of 2017, China’s direct investment in Japan was US$3.44 billion (about 23.9 billion yuan), and China’s direct investment in Japan was about 900; from January to March 2018, China was against Japan. The industry directly invested 135 million US dollars.

The prospect of Sino-Japanese cooperation in the economic and trade field is behind the strategic shift in Japan in recent years.

Chen Yan said that the Trump administration of the United States announced that it would impose tariffs on steel products imported from Japan, and hoped that Japan would reduce its exports to its cars and put pressure on Japan. In addition, Trump announced that it would withdraw from the Trans-Pacific Partnership Agreement. (TPP), Japan is equal to losing an important ally in this respect.

"Japan and the United States are alliances, but there are many contradictions in the economic field." Chen Yan said, "Japan is currently facing a strategic choice: how to be consistent with the United States, and not to listen to the United States."

Secondly, Chen Yan pointed out that there are also unstable factors in Japan-Russia relations. "In Japan's neighboring countries, Japan has not dominated relations with South Korea and North Korea." Chen Yan said, "At this time, Abe hopes to further expand cooperation in various fields with China."

Chen Zilei told the First Financial Reporter that this year marks the fortieth anniversary of the signing of the Sino-Japanese Treaty of Peace and Friendship, and it coincides with the reshuffle of the cabinet by Abe. "Abe has chosen a good time to visit China."

In fact, since the second half of this year, the mutual dynamics between China and Japan have been frequent.

President Xi Jinping met with Shinzo Abe in Vladivostok on September 12. Xi Jinping pointed out that this year marks the 40th anniversary of the conclusion of the Sino-Japanese Treaty of Peace and Friendship. In the recent period, Prime Minister Abe and the Japanese government have repeatedly shown positive attitudes in their relations with China. Thanks to the joint efforts of both sides, China-Japan relations are on the normal track and face important opportunities for improving development.

In the economic and trade field, in late August and early September, the delegation of the Liberal Democratic Party led by the Liberal Democratic Party’s second-ranking Jun Bo and the Japanese Komeito delegation led by Yamaguchi Nazuo visited China.

On October 10, the eighth meeting of the China-Japan ruling party exchange mechanism was opened in Japan. According to Japanese media reports, the Japan-China ruling party exchange meeting also issued a "common policy proposal", which mentioned that the current world economic instability factors increase, Japan and China should maintain multilateralism, adhere to free trade, and rely on the "Belt and Road" "Promoting cooperation.

On October 11, the fourth round of dialogue between Chinese and Japanese entrepreneurs and former senior officials was held in China. Former Japanese Prime Minister Yasuo Fukuda and President of the Japan Federation of Economic Organizations, Nishi Hiroshi, attended the dialogue.

For Abe's current visit to China, Xiao Li Dao Ming is very much looking forward to it, especially the establishment of the mechanism for innovation and intellectual property between the Chinese and Japanese governments.

The Japanese media is also very concerned about the seven-year visit of the Prime Minister to China. In the report of NAN, the issue of trade friction between China and the United States and the desire to rent a panda to China were also mentioned.


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