Japan has lifted its self-imposed ban on exporting arms. The decision, announced by Chief Cabinet Secretary Osamu Fujimura comes amid growing concern on rising costs and public debt.
A landmark agreement with China to promote direct exchange of their currencies is also set to ease debt worries. Currently businesses in both countries need to buy US dollars before converting them into the desired currency thus adding extra costs.
The move is a blow to the dollar but Tokyo and Beijing agree it will help promote economic growth in the region.
“China’s growth offers opportunities for Japan and the rest of the world. Stronger ties between the two nations are essential for solving regional and global problems,” explained Yoshihiko Noda, the Japanese Prime Minister
China is reportedly Japan’s biggest trading partner worth an estimated 260 billion euros. Tokyo also announced its intention to buy Chinese government bonds which analysts claim may prove beneficial to both nations. Beijing believes the new agreement will further open up its financial markets.
Its believed Japan could finalise a similar deal with India when Prime Minister, Yoshihiko Noda visits New Delhi later this week. It would provide a boost to the rupee Asia’s worst performing currency this year. It is understood the two finance ministries are putting the final touches to the deal.