Boost to partnership

Given what was signed and agreed upon yesterday alone, Japanese Prime Minister Yoshihiko Noda's two-day visit to China has been at once substantive and efficient.

The People's Bank of China confirmed that the Japanese government's application to invest in Chinese government bonds is currently being processed. That signals confidence that will resonate beyond the financial field.

There's no doubt that it is a substantial step forward for the internationalization of the yuan, because for the first time the Chinese currency will become part of the foreign exchange reserve of a developed economy. The endorsement by the world's second-largest foreign exchange reserve holder is an essential boost to that process. The new channel for bilateral collaboration is expected to benefit both sides in coping with international financial uncertainties.