Fri. Mar 29th, 2024

China and Germany have signed several agreements on Friday, to bolster both nation’s coordination in capital markets, banking, and finance, and also pledged to open market access and strengthen their pragmatic cooperation in order to broaden their economic ties.

According to Reuters news reports, the agreement reached out after German finance minister Olaf Scholz visited Beijing for a two-day official trip for talks with vice premier Liu He, China’s President Xi Jinping’s top economic advisor.

According to a joint statement released after the meeting, both the sides reaffirmed that “they will strengthen macroeconomic policy coordination and pragmatic cooperation in the fiscal and financial fields and expand strategic cooperation”.

Amid uncertainty caused by China-US trade war, the trade negotiation between the two countries has softened, though both expressed their willingness to demonstrate that the world remains multilateral.

Both sides agreed to maintain the global multilateral system, enhance international economic governance, fight trade deficit and support the multilateral trading system via the World Trade Organization.

Before the talks at the Diaoyutai State Guest House in the Chinese capital, Scholz told reporters: “It is important that, contrary to recent trends that we can observe elsewhere, we are seeing progress in our cooperation.” He said, “As the world economy slows, market volatility rises, creating greater risks.”

Scholz said: “If you work closely together, you learn to appreciate similarities, but also to know differences,” adding, “And we have a lot of common interests in financial matters, and then we need to bring different perspectives together. I believe that is the very important task of this financial dialogue.”

Liu and Scholz said German-Chinese cooperation would benefit their economies, adding they stay committed to ensuring open market access and also easing investment barriers in both nations.

Liu told reporters: “The two sides conducted in-depth, pragmatic, efficient and fruitful discussions, and formed a series of fruitful results and consensus.”

According to the official statement, both sides recognized their potentials for cooperation in their financial firm. German insurers could set up a wholly-owned insurance firm in China, who are welcomed to conduct reinsurance business in Germany.

It said: “China commits to continued granting of national treatment for foreign insurance companies and a level playing field for domestic and foreign insurance companies.”

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