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International relations

Japan's upper house approves social insurance agreement with China

Deal will relieve Japanese employees from double-paying pension contributions

People walk on the Bund in front of Shanghai's Pudong financial district. The new pension deal will reduce the annual financial burden on Japanese companies by some $484 million.   © Reuters

TOKYO -- The plenary session of Japan's upper house unanimously on Friday morning approved a bilateral social welfare agreement with China that will eliminate the requirement for their nationals to pay contributions into both countries' systems when they reside in each other's territory.

The two governments will work out details of the agreement, which will benefit Japanese companies that have operations in China, ahead of the targeted introduction in 2019.

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