BEIJING
During a visit to Beijing by the Prime Minister of Japan Yoshihiko Noda, the two Governments said in a surprise announcement Sunday they would encourage the use of their own currencies in bilateral trade, which is now done mostly in US dollars.
They also agreed to support the sale of a bond in the denomination currency yuan of China by Japan in Tokyo and overseas markets and the bank of Japan’s international cooperation in the mainland China market, which closed to investors the most.
A promise is a striking step for China and Japan, the second and third-largest in the world economy and be bound by the billions of dollars in trade but political relations are often strained over conflicting territorial claims and other disputes.
“To support economic growth and financial ties between China and Japan, the leaders of China and Japan have agreed to improve mutual cooperation in the financial markets of the two countries and encouraging financial transactions between the two countries,” the Government said in identical statements worded.