Sino-Japan partnership to help global recovery

By Ding Qingfen

BEIJING - China and Japan, the world's second and third largest economies, agreed on Sunday to seek and develop "new engines" for growth, a move that will also help stabilize the global economy.

Premier Wen Jiabao said during a meeting with a Japanese delegation that the "green economy and industries" would be a major part in bilateral economic cooperation.

"China and Japan are among the most important economies worldwide, enhancement of bilateral cooperation will not only benefit both sides but also help ... the recovery of the world economy," Wen said.

He also said bilateral trade had rebounded to the level before the financial crisis.

On Friday, the US Department of Commerce revised its estimate of economic growth in the second quarter to an annual rate of 1.6 percent, compared with a July estimate of 2.4 percent. The estimate was significantly lower than the 3.7 percent growth in the first quarter. Some analysts are worried about the possibility of a double dip recession in the US, which would have a detrimental impact on the global economy.

Wen met the Japanese delegation led by Katsuya Okada, Japanese minister of foreign affairs, who participated in the third China-Japan High-level Economic Dialogue in Beijing on Saturday.

Zhang Ping, minister of National Development and Reform Commission and chief economic planner in China, also said on Saturday after the dialogue that energy savings and environmental protection would be an important sector for cooperation between China and Japan and would also act as a new engine for bilateral growth.

"Japan has advanced technology and China boasts a powerful consumption capacity. There is huge potential for cooperation in the sector," Zhang said.