To support the growing economic and financial ties between China and Japan, the leaders of China and Japan have agreed to enhance mutual cooperation in financial markets of both countries and encourage financial transactions between the two countries, specifically in the following areas, paying attention to the principle that these developments should be market-driven.
I. Promoting the use of RMB and JPY in cross-border transactions between China and Japan.
A. Facilitating trade settlement in RMB and JPY to reduce foreign exchange risks and transaction costs for exporters/importers in both countries; and
B. RMB-denominated FDIs from Japan to Mainland China, including to subsidiaries of Japanese companies.
II. Supporting the development of direct exchange markets between RMB and JPY.
III. Supporting sound development of RMB and JPY bond markets.
A. RMB-denominated bonds issued by Japanese companies in Tokyo and other overseas markets; and RMB-denominated bonds issued by Japan Bank for International Cooperation in Mainland China markets as a pilot program; and
B. Application process is underway for the Japanese authority to invest in Chinese government bonds.
IV. Encouraging the private sector to develop RMB-denominated and JPY-denominated financial products and services in the overseas markets.
V. Establishing “Joint Working Group for Development of China-Japan Financial Markets” to promote mutual cooperation in the above-mentioned areas.
In addition, we agreed to accelerate the ASEAN+3 financial cooperation, including introducing the regional crisis prevention function and further strengthening the crisis resolution mechanism of CMIM.
