China mulls broadening use of yuan for trade with Russia

China's trade minister proposed more use of the Chinese currency in settling trade with Russia in the face of a falling ruble to ensure safe and reliable trade, Hong Kong broadcaster Phoenix TV reported on Saturday.

The ruble has fallen about 45 percent against the US dollar this year, and suffered particularly steep falls in the past few weeks. Russian President Vladimir Putin has declined to call it a crisis and said it would eventually rise again.

Chinese Minister of Commerce Gao Hucheng said the use of the yuan has been -increasing for several years but Western sanctions on Russia had made the trend more prominent, Phoenix TV said on its website news.ifeng.com.

Gao said China and Russia were capable of achieving this year's trade target of $100 billion. Last year, trade between the two countries gained 1.1 percent to reach $89.2 billion, according to Chinese customs figures.

"Capital investors may be more interested in a volatile stock or foreign exchange -market. But in terms of -concrete cooperation [between the two nations], we shall have a balanced mentality and push forward those cooperation," Gao was quoted as saying.

Cooperation on energy and manufacturing projects would not be greatly affected by the situation in Russia, Gao said.

China would instead focus on fundamental factors such as how the two economies complement each other, he said.

China has been aiming to increase the influence of the yuan. With 32 percent of its $4 trillion foreign exchange reserves invested in the US government debt, China also wants to curb investment risks in the US dollar.

Chinese Foreign Ministry spokesman Qin Gang also told a regular press conference on Thursday that the currency-swap arrangement and energy cooperation between China and Russia are not affected by the depreciation of ruble.

The currency-swap agreement signed by the two countries takes into consideration the fluctuation in exchange rates, he said.

Qin also noted that the leaders of the two countries have reached consensus to deepen cooperation in the areas of energy, high-speed railway, infrastructure and the development of Russia's Far East region.