China and Japan yesterday agreed to establish a body to resolve economic disputes that are expected to arise as trade and investment between both nations increases.
The decision was made during a meeting between Premier Zhu Rongji and Japanese Prime Minister Junichiro Koizumi at which they appeared to have decided to put aside their mutual suspicion and step up economic and political exchanges.
In contrast to earlier meetings between the two, contentious issues such as the way Japanese text books describe Japan's wartime role in China and Mr Koizumi's visit to a controversial war shrine were not raised.
Mr Koizumi declared earlier that Japan did not see China's economic development as a threat, a statement that went down well with the Chinese side.
A senior Japanese official said that this was the first time that the Japanese Prime Minister had publicly declared that Japan did not regard China's rapidly growing economic clout as a threat, but rather as an opportunity for Japanese businesses to enter the Chinese market. Mr Koizumi's decision to attend the Boao meeting has also been seen as a positive sign by China.
The Japanese official said that Mr Zhu had told Mr Koizumi that his presence at Boao was an expression of sincerity in developing Japan-China relations.
