China and Japan will tighten their ties to a "historic turning point"

BEIJING (Reuters) – China and Japan pledged on Friday to tighten ties as the two countries meet at a "historic turning point" by signing a wide range of agreements, including a pact of exchange. foreign currency amounting to $ 30 billion (23.41 billion pounds) tensions with Washington.

Japanese Prime Minister Shinzo Abe and Chinese Premier Li Keqiang also agreed that the two countries would work together to achieve denuclearization on the Korean peninsula.

The pacts were reached during Abe's three-day visit to Beijing, as the two neighbors sought to identify new areas of cooperation and seek new ways to promote confidence, which was sometimes fragile since the recovery. diplomatic relations in 1972.

"From competition to coexistence, bilateral relations between Japan and China have entered a new phase. Hand in hand with Prime Minister Li, I would like to advance our ties, "Abe said at a press briefing.

Abe is scheduled to meet President Xi Jinping on Friday as part of the first large-scale Sino-Japanese summit since 2011.

Japanese companies, including large auto companies like Toyota (7203.T) hope to see standardized relations with China in order to compete with US and European rivals, while Beijing hopes Tokyo will approve its ambitious Belt and Road program, an initiative that Xi says will strengthen trade and transportation links with other countries.

Abe also said Tokyo was "determined" to normalize diplomatic relations with Pyongyang, but only if the preconditions were met, including denuclearization and the liberation of abducted Japanese citizens.

"Our two countries bear a great responsibility in achieving peace and stability in this region," Abe said.

Efforts to advance Sino-Japanese relations should "persevere relentlessly to prevent the appearance of new twists", so that previous efforts are not in vain, said Li at a joint briefing with Abe Friday.

"The Chinese side is willing to work with the Japanese side to return to a normal path and maintain the stable, sustainable and healthy development of bilateral relations," he said, adding that he had had frank discussions with Abe since his arrival on the issue of mutual concerns.

They reached a consensus, Li said, that the preservation of long-term healthy and stable relations between China and Japan is in line with the interests of both countries and the region and the world.

The move to strengthen economic ties came when China and the United States have been opposing each other's tariffs in recent months. Japan faces risks by exporting manufacturing equipment and electronic parts to China, which are used to manufacture finished products for the United States and other markets.

Prior to the information meeting, China and Japan signed an agreement to prepare annual plans for talks, dialogues and exchanges, as well as a pact to strengthen cooperation in the field of human rights. 39; innovation.

They also agreed to strengthen cooperation in the securities markets, including through the creation of a list of trading funds for trading (ETF), and to facilitate customs clearance.

The two sides signed a currency exchange agreement of up to 3,400 billion yen ($ 30.29 billion), valid until 2021. They also signed an agreement in view of creating a compensation bank in yuan.

The two sides agreed that China and Japan should defend free trade and accelerate negotiations on the Regional Economic Partnership (RCEP) and a trade zone between China, Japan and Korea.

The RCEP is a free trade agreement proposed by China with Southeast Asia and various countries in the Pacific region, including Japan.