Japan, China strike deals during Abe visit as ties improve

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China's President Xi Jinping (R) shakes hands with Japan's Prime Minister Shinzo Abe (L) during their meeting in Beijing on October 26, 2018. (Photo by JAPAN POOL VIA JIJI PRESS / JIJI PRESS / AFP) / Japan OUT

BEIJING: Japan and China signed $2.6 billion in business deals and touted their warmer ties on Friday during a rare visit to Beijing by Japanese Prime Minister Shinzo Abe as both face trade challenges from US President Donald Trump.

Abe met Chinese President Xi Jinping after a full day of activities that included talks with Premier Li Keqiang and an honour guard with Japan’s flag raised outside the Great Hall of the People across from Tiananmen Square.

Relations between Asia’s two biggest economies have improved in recent years after they sunk to new lows in 2012 when Tokyo “nationalised” disputed islands claimed by Beijing.

The last official visit to Beijing by a Japanese prime minister was in 2011.

But as Trump’s tariffs bite, China has increasingly looked to Japan to serve as a hedge against growing US protectionism.

In their meeting, Xi told Abe that “interdependence between the two countries is deepening by the day”, and pledged to increase economic cooperation, according to Communist Party mouthpiece the People’s Daily.

Earlier in the day Abe, standing alongside Li, told a press conference that the two countries must “play a constructive role for the sake of this region’s peace and prosperity”.

“I believe active trade will deepen ties between Japanese and Chinese peoples further,” he said.

For his part, Li said “international conditions are unstable, and uncertainties have increased”, but the countries’ economic cooperation would “benefit the development of global free trade”.

The relationship has rapidly warmed up as Trump has slapped massive tariffs on China while also targeting Japanese exports in his effort to cut US trade deficits, despite touting his personal bonds with Abe and Xi.

But despite the feel-good vibes, Abe also delivered a sterner message, a Japanese spokesman said, warning China that “without stability in the East China Sea, there will not be a true improvement in the relationship.”