China seeks to learn from mistakes of 1985 Plaza Accord

Economic policymakers from Japan and China met Friday to discuss the impact the yen’s steep appreciation had on the Japanese economy after the 1985 Plaza Accord, a Cabinet Office official said.

The high-level macroeconomic talks, held in Tokyo, were first between the Chinese commission and the Cabinet Office in four years. The Japanese delegation was led by Jun Hamano, vice minister for economic and fiscal policy.

Some commentators blame the Plaza Accord for inflating the economic bubble that drove Japan in the late 1980s and the prolonged recession that followed its implosion.

The Chinese side was headed by Zhu Zhixin, vice chairman of China’s National Development and Reform Commission, who showed strong interest in the accord’s domestic impact on exchange rates.

Beijing has been under pressure to raise the value of its currency, the yuan.