Japan, China to hold talk for disputed islands
Sources said, Prime Minister Naoto Kan and his Chinese counterpart Wen Jiabao met together and discussed the tensions following the Sep 7 maritime incident near the disputed Senkaku islands and agreed to negotiate at the earliest.
Both the leaders agreed that current relations were “not favourable," the Japanese side said, adding that business ties are to be revived.
Earlier reports stated that China had blocked rare earths exports to Japan to which China had officially denied the reports.
The tension rose when Japanese authorities on Sep 7 arrested a Chinese fishing boat captain after his boat allegedly collided with Coast Guard vessels in the disputed waters near the islands, known as Senkaku in Japan and Diaoyu in China.