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          Peninsula, finance top Wen-Noda talks

          Updated: 2011-12-26 07:14

          By Li Xiaokun and Zhang Yunbi (China Daily)

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          "But Noda did not delay his visit to China - we can see how much Tokyo wants to hear from Beijing on this issue now."

          There have been reports that the DPRK was willing to suspend its uranium enrichment program in return for food aid from Washington.

          Japan, having no diplomatic ties with the DPRK, can do little other than support China's engagement with Pyongyang, Takehiko Yamamoto, professor at Waseda University, said.

          "You might call it an achievement if Japan and China confirm their joint resolve to work together to protect peace and stability in Northeast Asia including on the Korean Peninsula," he said.

          Economic ties

          The Japanese government's application to invest in Chinese government bonds is being processed, the People's Bank of China, the central bank, said in a statement on its website on Sunday night.

          The investment will be "the first time for a developed economy to buy yuan-denominated assets with its foreign reserves", Lu Zhengwei, chief economist with Industrial Bank Co Ltd, said.

          "It is significant for the yuan's internationalization as it is turning from a trade settlement currency to a reserve unit," Lu said.

          But Yutaka Yokoi, press secretary of the Japanese Foreign Ministry, said that the two sides did not discuss details of the bond deal on Sunday.

          The central bank statement also said both countries will promote the use of local currencies in trade and China will encourage Japanese investors to invest in China using the yuan.

          Also at the leaders' meeting, Japan and China agreed to press ahead with talks on a free trade pact that also includes the ROK.

          The announcement builds on an agreement between the three countries last month to seek a trilateral investment treaty and finish studies on a free trade agreement this year so that they could start formal negotiations on the trade pact.

          Li Xiang contributed to this story.

           

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