China and Japan meet as tensions grow over disputed territory

The meeting between prime minister Naoto Kan and Chinese president Hu Jintao in Yokohama, Japan, was their first formal talks since the territorial dispute erupted two months ago and badly strained ties between the Asian neighbours.

Announced at the last minute, the meeting lasted less than half an hour. Just before the talks began, thousands of flag-waving Japanese held a protest march.

Japan's deputy chief cabinet secretary Tetsuro Fukuyama said Mr Kan and Mr Hu expressed their positions on the island issue and agreed that developing strategic relations between the two countries would benefit not only the two sides but also the region and the world.

Mr Fukuyama did not elaborate on whether the two made any progress toward reconciling those positions, but said the leaders agreed on other broad issues, including private-sector co-operation and exchanges, adding that the fact the talks were held at all showed progress.

"The formal bilateral talks mark a major step forward in improving Japan-China relations," Mr Fukuyama said. "This is a very important time for both of our countries."

Relations between Tokyo and Beijing have been fraught after Japan arrested a Chinese fishing boat captain whose boat collided with two Japanese patrol vessels near disputed islands in the East China Sea on September 7.

Japan released the captain, but Beijing demanded an apology and compensation, prompting Tokyo to demand that Beijing pay for damage to the patrol boats. The dispute sparked nationalist demonstrations in both countries.

Just before Mr Hu met Mr Kan, thousands of Japanese protesters gathered for an anti-China rally near the summit venue, waving Japanese flags and shouting "Defend our territory" and "Defeat Chinese imperialism".

The group that organised the protest is right-of-centre, but emotions have been high among a broad swathe of Japanese who feel their country, which brutally invaded and attempted to colonise parts of China before and during the Second World War, is being bullied by their neighbour now that it has become the new financial and military powerhouse of the region.

Last week, a video showing the September 7 collisions was leaked on YouTube.

Japan is also in dispute with Russia, which claims islands to its north. In a meeting with Russian president Dmitry Medvedev after the Hu summit, Mr Kan protested over a visit Mr Medvedev made to one of the islands this month.