CHINESE Premier Li Keqiang said yesterday that China, Japan and South Korea should accelerate the negotiations for a trilateral Free Trade Agreement (FTA) and achieve the Regional Comprehensive Economic Partnership (RCEP) at an early date so as to promote the building of an East Asian Economic Community.

Li made the remarks at a trilateral meeting with Japanese Prime Minister Shinzo Abe and South Korean President Moon Jae-in in Tokyo.

China, Japan and South Korea have all benefited from free trade in their respective development and are all advocates of free trade, Li said.

Li stressed that under current circumstances, the three countries should stand together in an even more steadfast manner to safeguard the rule-based multilateral free trade system and take a firm position against acts of trade protectionism and unilateralism.

During Li’s visit, China is expected to sign a bilateral currency swap agreement with Japan, the Chinese Government has said, quoting an article written by Premier Li that was published by Japan’s Asahi newspaper Tuesday.

China will also grant a quota of Renminbi Qualified Foreign Institutional Investors (RQFII) to Japanese investors, Li said in the article.

China and Japan plan to renew the currency swap agreement to reopen bilateral currency exchanges in case of financial crises and other emergencies, reported Japan’s Nikkei.

China and Japan are expected to reach a consensus on speeding up specific consultation on a new currency swap agreement aimed at strengthening bilateral cooperation in the finance sector during Li’s visit to Japan, the Nikkei report said.

The Bank of Japan and the People’s Bank of China will initiate a specific negotiation mechanism following the deal, according to Nikkei.

China and Japan signed a currency swap agreement in 2002, which expired in 2013, but was not renewed.

Under the planned agreement, it will be possible to directly procure the yuan from the Bank of Japan during a financial crisis. Weakening concerns about the liquidity of the Chinese currency will encourage Japanese institutional investors to purchase the yuan-denominated securities.

China and Japan are also expected to reach a consensus on establishing a framework for Japanese financial institutions to invest in Chinese stocks and bonds and improve yuan settlements in the Japanese market, Nikkei said.(SD-Xinhua)