Japanese and Chinese finance chiefs to hold talks next week on reinforcing financial ties

Kyodo

The finance ministers of Japan and China will meet on Aug. 31 in Beijing to discuss strengthening financial cooperation, the Finance Ministry said Friday.

Finance Minister Taro Aso and his Chinese counterpart Liu Kun are expected to take part in the seventh round of the so-called finance dialogue, which was last held in May 2017 in Yokohama.

Aso, who doubles as deputy prime minister, may also meet with China’s State Council Vice Premier Liu He, who is in charge of trade negotiations with the United States.

Working-level talks are likely to focus on a currency swap line to be used during a financial crisis.

Tokyo and Beijing agreed in May to resume the framework, which expired in 2013 after bilateral ties soured over a territorial dispute and differing views on wartime history.

Sources have said the swap could be expanded to around ¥3 trillion ($27 billion) from the previous ¥3 billion, with a deal to be finalized when Prime Minister Shinzo Abe visits China to meet with Chinese President Xi Jinping, possibly in October.

Other topics of discussion may be economic and fiscal policies aimed at countering the impact of heightened trade frictions, after finance leaders from the Group of 20 major economies, including Aso and Liu, voiced concern over the issue last month at a meeting in Buenos Aires.