Germany and China are reportedly working together to improve the latter's financial sector. By pooling their resources and influence the two governments are planning to improve China's market access in order easily reach out to banks and insurers.
The news was confirmed by the German finance minister on Thursday. He added that Germany also welcomes the plan of both China and the United States to ease trade tensions by engaging in trade talks rather than slap each other's products with tariffs.
German Minister of Finance Olaf Scholz is on a two-visit to Beijing. During a speech, he highlighted that both China and Germany are beacons of the fact that multilateralism. He added that the two countries are also cooperating in a lot of sectors, including finance.
China and Germany are expected to a sign a number of agreements on Friday. These agreements will encompass a number of industries. Chief among these is the expanded cooperation in the financial services. These agreements are part of Mr. Scholz's effort in order to convince the Asian superpower to open its economy to foreign businesses.
In a statement acquired by Reuters, Mr. Scholz said, "This is especially important for the financial sector. This will lead to more wealth on both sides."
Mr. Scholz is expected to meet with Chinese Vice Premier Liu He on Friday. The two leaders are expected to attend a ceremony when Bafin, Germany's financial market regulator, will sign two agreements along with Chinese authorities. This was confirmed by a German government official.
The first of the two agreements is a cooperation deal with China Banking and Insurance Regulatory Commission. The second agreement is with China's Securities Regulatory Commission. Some inside sources have noted that there might be a third deal slated to be signed on the same day between China and the German bank Bundesbank.
Mr. Scholz is also adamant for China to choice Germany as a hub for yuan-denominated financial products and services in Europe. Many analysts have said that Germany has been pushing towards this line ever since the United Kingdom voted to leave the European Union. It is also important to that since the UK's exit Germany has been called by many EU member nations to take up the leadership role in the region.
Regarding the trade war between China and the United States. Mr. Scholz said that the latest round of trade talks between the two countries is a positive sign that progress is being made.
