Cooperation to broaden economic ties

Germany and China have 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 between German finance minister Olaf Scholz for talks with vice premier Liu He, who is president Xi Jinping’s top economic adviser.

Trade between the two nations has softened amid uncertainty caused by the US-China trade war, but both have shown a willingness to demonstrate that the world remains multilateral, according to a report by Reuters.

Liu also noted the importance of strengthening trade ties.

“As the world economy slows, market volatility rises, creating greater risks,” he told reporters.

Both sides recognized 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.