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Fed QE trim brings SK, China closer
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China and South Korea agreed yesterday to strengthen bilateral cooperation in dealing with possible spillovers from the US Federal Reserve’s tapering of its quantitative easing.
The deal came after Xu Shaoshi, head of the National Development and Reform Commission, held a meeting with his South Korean counterpart Hyun Oh-seok in Seoul yesterday to discuss various issues on macro-economy and bilateral cooperation.
The two countries have held economic cooperation meetings since 1992 when South Korea and China established diplomatic ties. The meeting rose to the ministerial level in 1999 from the vice ministerial-level.
This meeting marked the 12th of its kind and was also the first since new leaders took office in the two countries.
The deal came after the Fed decided to trim its monthly bond purchases by US$10 billion to US$75 billion starting next month.
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