The main areas of cooperation under this agreement include policy coordination, facilities connectivity, unimpeded trade, financial integration and people-to- people bond, a statement from Government Communication Unit has reported.
“In signing the deal the two countries will work together within the Belt and Road Initiative to realize the goal of common development, translate mutual complementary strengths into advantages for practical cooperation and sustainable growth to enable the two countries to enhance their political relations, economic ties, security cooperation and people-to-people exchanges.
“This deal will further strengthen cooperation and promoting regional connectivity between regions, jointly establishing an economic cooperation framework which is open, inclusive, balanced and beneficial to all so as to maintain regional peace, security, stability and sustainable development,” the statement said.
As part of the deal the two countries will promote the bilateral cooperation based on being guided by the principles of extensive consultation, joint contribution and shared benefits.
Under the agreement the two participants will respect the core interests and major concerns of each other, deepen mutual trust and beneficial cooperation for common development and prosperity;
- In accordance with respective effective domestic laws and regulations which are consistent with their respective international obligations and commitments, two participants will ensure the safe and smooth progress of related cooperation projects and energize their economic and social development.
- In accordance with the concept of cooperation, development and win-win progress under the Initiative of jointly building the Belt and Road, both countries will make full use of bilateral cooperation mechanisms, multilateral mechanisms that they have both joined and effective regional cooperation platforms to form synergy, provide each other with support.
Hence, the two countries will regularly communicate and promote the synergy and integration of their major development strategies, planning and policies, as well as strengthen communication and coordination for respective important major policy adjustments, the statement said.
“Both countries will conduct cooperation and exchanges of infrastructure connectivity in areas mutual interest such as roads, bridges, civil aviation, ports and energy, telecommunications and open up further to each other, expand two-way investment and trade flow, further deepen investment, trade and industrial cooperation, explore ways and methods to promote substantive mutually beneficial cooperation, and encourage their businesses to build industrial park and trade cooperation zone.
“Both countries will also encourage respective financial institutions to provide financing support and financial services according to market and commercial principles for production capacity, investment and trade cooperation,” the statement said.
Under the agreement the two countries will expand the use of local currency in investment and trade based on the investment and trade demands, strengthen the exchanges and cooperation between their currency and financial regulators and promote the mutual establishment of the financial institutions between the two countries.
“A cooperation mechanism will be established to handle financial risks and crises, as well as increase cooperation between the banking sector and institutional investors.
“Both countries will promote people-to-people exchange, further develop the sister cities network and conclude cooperation agreements on education, culture, health, tourism and public welfare.
“The two countries will enhance exchange and cooperation between their local governments, media, think-tanks, and the youths, and continue to promote the development cooperation related to public welfare,” the statement.