Germany, China pledge to open markets, deepen financial cooperation
(Adds comments from ministers)
By Michael Nienaber
BEIJING, Jan 18 (Reuters) - Germany and China on Friday
signed agreements to strengthen coordination in banking, finance
and capital markets, and pledged to further open market access
and deepen cooperation to broaden economic ties.
The agreements were reached after a two-day visit to Beijing
by German Finance Minister Olaf Scholz for talks with Vice
Premier Liu He, who is President Xi Jinping's top economic
adviser.
Both sides reaffirmed that "they will strengthen
macroeconomic policy coordination and pragmatic cooperation in
the fiscal and financial fields and expand strategic
cooperation," according to a joint statement after the talks.
Trade between the two nations has softened amid uncertainty
caused by the U.S.-China trade war, but both have shown a
willingness to demonstrate that the world remains multilateral.
They agreed to work to improve international economic
governance, maintain the global multilateral system, fight trade
protectionism and support a rule-based multilateral trading
system through the World Trade Organization.
"It is important that, contrary to recent trends that we can
observe elsewhere, we are seeing progress in our cooperation,"
Scholz told reporters before the talks at the Diaoyutai State
Guest House in the Chinese capital.
A level playing field in terms of market access for banks
and insurers is important, added Scholz.
Liu also noted the importance of strengthening trade ties.
"As the world economy slows, market volatility rises,
creating greater risks," he told reporters.
Berlin has stressed its "close and advantageous" trade ties
with China, the world's second largest economy compared to
number four Germany. It wants to protect and strengthen
sensitive German and European business sectors as China makes
state-backed acquisitions in strategic industries overseas.
"If you work closely together, you learn to appreciate
similarities, but also to know differences," Scholz said.
"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," he added.
German-Chinese cooperation benefited their economies, Liu
and Scholz said, adding they are committed to ensuring open
market access and easing investment barriers in both countries.
"The two sides conducted in-depth, pragmatic, efficient and
fruitful discussions, and formed a series of fruitful results
and consensus," Liu told reporters.
FINANCIAL COOPERATION
Both sides recognised the potential for cooperation in the
financial sector and are open to financial firms deepening their
cooperation in third countries, according to the statement.
German insurers can set up wholly-owned insurance holding
firms in China, whose insurers and reinsurers are welcome
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," it said.
German banks can apply to become a primary dealer in the
open market operations of the People's Bank of China (PBOC).
The two countries will also support efforts to find areas of
cooperation between China's Belt and Road initiative and the
EU's strategy for linking Europe and Asia, as well as European
infrastructure planning.
"I am very happy that we have succeeded in agreeing
concrete, very concrete steps today," Scholz said. "There must
be a level playing field, reciprocity is the key."
(Reporting by Michael Nienaber;
Writing by Ryan Woo; Editing by Clarence Fernandez and Darren
Schuettler)
First Published: 2019-01-18 05:38:39
Updated 2019-01-18 08:43:57
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