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Business / Economy

Beijing, Seoul sign 17 deals, boost economic partnership

By ZHAO YINAN/MO JINGXI (China Daily) Updated: 2015-11-02 07:21

Beijing, Seoul sign 17 deals, boost economic partnership

Premier Li Keqiang attends the welcoming ceremony hosted by Republic of Korea President Park Geun-hye in Seoul on Oct 31,2015. [Photo /Xinhua]

China and the Republic of Korea moved toward a closer economic partnership with deals to synchronize development strategies and speed up the ratification of a bilateral free trade agreement.

The two sides agreed on Saturday to launch a direct transaction market for their currencies in Shanghai, according to a statement released by the People's Bank of China.

China also supported the ROK in a plan to issue a yuan-denominated bond in China's debt market.

Beijing also decided to expand the renminbi qualified foreign institutional investor quota, commonly known as the RQFII quota, held by Seoul to 120 billion yuan ($18 billion).

Premier Li Keqiang and President Park Geun-hye witnessed the signing of 17 deals after a one-on-one meeting at the presidential Blue House in Seoul.

The two sides agreed to synergize economic development strategies, especially on innovation and the upgrading of the manufacturing sector, to encourage better understanding of each other's policies. They also agreed to encourage more cross-border projects among businesses.

The two economic allies agreed to help facilitate the passage of the bilateral free trade deal in their own legislatures, in addition to expanding the ROK's food exports to China and strengthening industrial cooperation.

Talks to mark maritime boundaries will be initiated as soon as possible to resolve issues stemming from overlapping exclusive economic zones in the Yellow Sea, the leaders agreed.

According to Seoul-based Yonhap News Agency, China and the ROK have designated Samsung Everland, which operates ROK's largest amusement park, as the host for two pandas to be delivered on loan by China next year. Sending pandas is a time-honored goodwill gesture by Beijing.

"My visit aims to take bilateral cooperation in all regards to a higher level and together maintain the stability in Northeastern Asia," Li said at the meeting.

Park said the ROK is willing to expand cooperation with China on trade, finance, innovation, manufacturing and medical care.

It was Li's first visit to the ROK in his capacity as premier.

China is the ROK's largest trading partner, and the ROK is China's third-largest trading partner. The two countries are the largest source of overseas students and the two most popular tourism destinations for their residents, according to the Ministry of Foreign Affairs.

Huo Jianguo, former president of the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce, said it is likely that the bilateral free trade agreement could take effect by the end of this year, since both sides are facing great export pressure in light of the global economic slowdown, and they hope the FTA will facilitate trade and investment.

Huo said the FTA will help stabilize the economy of China and the ROK, both of which are facing economic difficulties at the moment.

A closer economic partnership between the two countries is expected to energize all of Northeastern Asia and play an active role in the economic recovery of the region, a traditional industrial hub burdened by outdated industries.

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