China and Japan unite on euro fund expansion

Japan and China have both expressed conditional support for IMF funds aimed at addressing the European debt crisis, the Financial Times reported. In a joint statement on Sunday, Chinese Vice Premier Wang Qishan and Japanese finance minister Jun Azumi said they were ready to support the IMF’s “important role” in addressing European stability. They also said the current EUR500 billion (US$659.9 billion) cap on bail-out funds needed to be removed to make way for further support from non-European countries. This meeting is the most recent example of increased financial coordination between Tokyo and Beijing. “We agreed that Japan and China will co-operate so as to be able to common action in response to an IMF request,” said Mr Azumi. The two leaders also expressed support for doubling the US$120 billion available to the Asian bail-out mechanism known as the Chiang Mai initiative.