At a Tokyo meeting, the foreign ministers of China and Japan have agreed to lift virus-related travel restrictions by the end of the month, according to Bloomberg. The two countries also re-stated their differences over the disputed islands in the East China Sea.

  • The Tokyo meeting calibrates China’s focus to strengthen ties with key American allies ahead of U.S. presidential-elect Joe Biden’s inauguration next year. 
  • Chinese foreign minister Wang Yi and Japanese counterpart Toshimitsu Motegi reiterated that stable Japan-China ties are important for the region and world.
  • The foreign ministers agreed on:
    • Setting up a defense hotline by the end of the year.
    • Restarting a high-level economic dialogue next year.
    • Cooperating on the Tokyo and Beijing Olympics.
    • Sharing expertise on the coronavirus.
    • Establishing a framework for talks on climate change and agricultural trade.
    • Bringing the RCEP trade agreement into force quickly and moving forward on a South Korea bilateral trade deal. 
  • Motegi pressed for forward-looking action on the disputed islands of Senkaku in Japan and Diaoyu in China, but Wang responded that China would defend its rights over the isles. 
  • Both foreign ministers will meet again on Wednesday for further talks.

China and Japan stocks are mixed. NIKKEI 225 is up 2.50%, SSE Composite Index is down 0.34%, HSI is up 0.39%