Japan and China to Discuss AIIB in June

Japan and China plan to hold finance discussions in Beijing in June, which could include topics such as the China-led Asian Infrastructure Investment Bank (AIIB), Finance Minister Taro Aso said on Tuesday.

The talks would mark the first bilateral finance dialogue since Prime Minister Shinzo Abe took office in late 2012 as diplomatic relations have been strained between the two countries over the wartime past and territorial disputes in the East China Sea.

Japan and China have held the finance talks four times since their first meeting in 2006, aimed at deepening financial cooperation. Discussions have included senior officials from the international bureau as well as budget, tax and other bureaus.

No specific agenda has been set for the June meeting, but issues including the AIIB, China’s yuan and shadow banking are likely be discussed, Aso told reporters after a cabinet meeting.

“China is becoming a major economic power in Asia. There are various issues to discuss between the two countries, such as the yuan, finance and shadow banking,” Aso said.

Asked whether the AIIB would be discussed during the meeting, Aso said: “We’ve told China the same things (concerns) all along but we did not receive responses from them by the end of March … We would tell them the same if I discuss the AIIB with (Finance Minister) Lou Jiwei.”

via CNBC

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza