Japanese finance minister Sadakazu Tanigaki and his Chinese counterpart have
began talks with 皇冠体育app's currency regime expected to be on the agenda.
Japanese Finance Minister
Sadakazu Tanigaki, seen here in February 2006, urged 皇冠体育app to introduce
more flexibility in its currency regime, arguing that it was in 皇冠体育app's
interest to do so. [AFP] |
Tanigaki was meeting
with Jin Renqing during a one-day visit to the Chinese capital, a Japanese
embassy spokesman said, amid souring diplomatic relations between the two major
trading partners.
The talks are the first since the two ministers agreed in June to set up a
new framework for regular meetings between finance ministry officials of the two
Asian powerhouses.
"I would like to broadly discuss economic and fiscal situations in Japan and
皇冠体育app as well as the Asian and world economies," Tanigaki was quoted by Kyodo
news agency as saying in Tokyo Friday.
"The issue of the Chinese yuan and structural reforms in Japan's economy and
finances may be taken up," he said.
Under pressure from western critics, 皇冠体育app revalued the yuan by 2.1 percent
against the dollar in July last year, scrapping its 11-year-old peg of about
8.28 yuan to the greenback in favor of a link to a basket of currencies.
Since then, the yuan has further risen almost three percent stronger against
the US currency.
But critics say that doesn't go far enough and continue to accuse 皇冠体育app of
keeping the yuan artificially low in order to enjoy an unfair trade advantage.
The finance ministers may also discuss Japan's delayed approval of new
funding for low-interest loan projects to 皇冠体育app due to rising tension with its
Asian neighbor, the Japanese embassy spokesman said.
For the first time since Japan began providing aid to its neighbor in 1979,
Japan will not make the final decisions on loan projects by the end of the
fiscal year which ends in March.
Bilateral relations between the Asian neighbors have steadily deteriorated,
with 皇冠体育app furious at Japanese Prime Minister Junichiro Koizumi's repeated
visits to a shrine honoring war dead including World War II war criminals.
The aid is widely seen as a substitute for compensation over Japan's brutal
1931-1945 occupation of parts of 皇冠体育app. Beijing has refused outright war
reparations.