China and Japan meet to discuss energy-rich area

China and Japan, whose relations are at their lowest point in decades over Tokyo's wartime past, meet today to discuss a disputed…

China and Japan, whose relations are at their lowest point in decades over Tokyo's wartime past, meet today to discuss a disputed, energy-rich area of the East China Sea, but chances of progress look slim.

The talks come a week after Chinese Vice Premier Wu Yi cancelled a meeting with Japanese Prime Minister Junichiro Koizumi and left the country a day early, furious at his refusal to stop visits to a controversial war shrine.

China and Japan are the world's second and third-largest oil consumers and have said they are committed to the natural gas talks, but traded accusations last week ahead of the two-day meeting in Beijing.

China criticised Japan for jumping the gun and starting to award exploration rights to private companies. Japan responded saying Beijing's going ahead with construction in the region was "outrageous".

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Tokyo has demanded China stop energy exploration and provide data on its gas development projects in the area, just one of several irritants in relations between the Asian heavyweights.

Thousands of people demonstrated across China last month over what many see as Japan's refusal to own up to atrocities committed during its 1931-45 invasion and partial occupation of China and its bid for a permanent seat on the UN Security Council.

Strains grew when Koizumi defended his visits to the Yasukuni Shrine, which China sees as a symbol of Japan's militarism, while Wu Yi was visiting, prompting her to cancel the meeting with Koizumi and return home.

China was also angered earlier this year when Washington and Tokyo declared that Taiwan, which China considers to be a breakaway province, was a mutual security concern.

As the East China Sea talks get under way in Beijing, Koizumi was due to visit the Chidorigafuchi tomb for the unknown soldier to take part in a ceremony that will honour war dead.

The tomb is less emotive than Yasukuni as it lacks the associations with convicted war criminals.

Despite the deterioration in diplomatic ties, trade between China and Japan has been growing strongly, valued at nearly $170 billion in 2004.