Japanese Prime Minister Yoshihiko Noda has decided that the government will provide full cooperation in a Chinese government project to build an eco-friendly city on the Bo Hai coast, government sources said Friday.
The plan to support the construction of Caofeidian eco-city is expected to be agreed by Noda and Chinese Premier Wen Jiabao when the Japanese prime minister visits China from Sunday and to be included in a joint statement after their meeting, the sources said.
At the meeting, Noda and Wen are also expected to reach agreement on setting up a forum to hold talks on concluding a bilateral free trade agreement, the sources said.
Japan and China are aiming to deepen their strategic relationship by boosting their economic cooperation, with the two countries set to mark the 40th anniversary next year of the normalization of diplomatic relations.
China has been promoting the eco-city project in an industrial development zone in Hebei Province since the last decade, aiming to have 800,000 people reside in the city by 2020.
Beijing has been reforming its tax system and developing ways to protect intellectual property to facilitate participation by Japanese companies, while Tokyo will work with the Japan Business Federation to encourage companies to join the project, the sources said.
Regarding the FTA, the two countries are aiming to stimulate free trade talks among Japan, China and South Korea as well as discussions with the 10-member Association of Southeast Asian Nations by proceeding with the bilateral talks, in which it would be easier to secure agreement, the sources said.
