Two Countries Signed Cooperation Deals After Presidential Visit
During his first presidential visit to South Korea last Thursday, President Xi Jinping and South Korea were able to reach agreements on several measures that will hopefully expand the use of China currency and further boost trade between the two countries. President Jinping was accompanied by 250 businesses executives including Robin Li, chairman of search engine Baidu and as Jack Ma, founder of the Alibaba e-commerce empire.
According to South Korea’s finance ministry and central bank, the Korean won will be directly exchangeable with the China’s yuan. This will make the Chinese currency the second currency that is directly convertible with the won after the U.S. dollar. China was also reached an agreement with South Korean institutional investors which was approved by the local authorities that will allow them to invest up to 80 billion yuan in Chinese stocks. The two way trade between South Korea and China reached US$229 billion last year which exceeded the combined value of the South Korea’s trade with United States and Japan.
President Jinping stated after the summit with South Korean President Park Geun-hye that both countries have agreed to strive better to boost their trade and hopefully reached the US$300 billion target. Both countries also introduced new measures that will push South Koreans to use the yuan for investing and savings.