China and Japan pledge to boost economic cooperation

Japan Wants to Work With India on 'Concrete' Infra Projects in Third Countries

Mr Xi, in turn, sees Japan as a way to mitigate the risk of a trade war with the US.

Japanese Prime Minister Shinzo Abe will pay a three-day official visit to China from Thursday.

Japan has trade problems of its own with the US.

That means Washington is making it harder for other countries to export to the U.S. market. "Japan is welcome to participate in China's progress in the new era". "With the efforts made by both parties, our relationship has been straightened out and come back to a normal track", Xi said.

Abe said Japan and China are both responsible for the region's peace and prosperity, which he hoped to achieve by boosting exchanges between them.

Abe met earlier Friday with Chinese Premier Li Keqiang and signed a broad range of agreements, including a 30-billion USA dollar currency swap pact.

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Mr Abe is to bring a 500-strong business delegation with him to discuss cooperation in third countries, as pledged during Chinese Premier Li Keqiang's visit to Japan in May. Osuga said he could not confirm that figure, saying they were purely commercial arrangements reached by the companies involved.

The two countries appear poised to enter a new phase in bilateral relations; one in which they will pursue cooperation on worldwide challenges while at the same time their territorial dispute over the Okinawa Prefecture's Senkaku Islands will continue.

"I believe active trade will deepen ties between Japanese and Chinese peoples further", he said.

Anti-Japanese riots broke out in China after Tokyo nationalized the islands, called Senkaku by Japan and Diaoyu by China, and Beijing froze high-level contacts. Even as China's impression of Japan has recovered from the 2012 crisis, thanks partly to tourism, the Japanese have remained wary.

War-time history still rankles, with China often complaining that Japan has not fully atoned for its occupation of parts of China before and during World War II.

Such cooperation, benefiting not only bilateral economic ties but also Asian economic integration and world free trade, will set a positive example for maintaining and developing global economic order, experts said. The Japanese elderly care sector is said to have recognized the huge potential of the Chinese market as the two countries have complementary pension services. A decision has also been taken to launch joint search and rescue missions in these waters.

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He declined to give details about the leaders' discussions on the territorial dispute, human rights and other sensitive issues.

Strategically, Japan is also seeking to position itself in the region as a counterforce to China.

For Japan politics and security expert Brad Glosserman, however, Abe is faced with a tough balancing act with the world's two largest economies. For Japan, the withdrawal from the Trans-Pacific Partnership (TPP) trade pact by the Trump administration sent shock waves through Japan's government offices in Kasumigaseki.

"The problem of the Kuril Islands have always been out of diplomatic plane, because the ordinary people of Japan for the second year get there by aircraft and visit the graves of their ancestors", according to Shinzo Abe.

This is the first full-scale Sino-Japanese summit since 2011.

Abe said on Friday that bilateral relations with China are at an "historic turning point" and that he expects new possibilities in industries such as infrastructure, logistics, healthcare and finance.

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