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Trade war drawing China, Japan into an embrace? A $30-bn pact offers clues

Abe is expected to meet with President Xi Jinping later on Friday in the first full-scale Sino-Japanese summit since 2011

Chinese currency, China
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Illustration: Binay Sinha

Reuters
China and Japan on Friday pledged to forge closer ties as both countries stood together at an "historic turning point", signing a broad range of agreements including a $30 billion currency swap pact, amid rising trade tensions with Washington.

Japanese Prime Minister Shinzo Abe and Chinese Premier Li Keqiang also agreed the two countries would work together to achieve denuclearisation on the Korean Peninsula.

The pacts were reached on Abe's three-day visit to Beijing as the two neighbours looked to carve out new areas of cooperation and seek new ways to promote trust, which has been fragile at times since diplomatic relations