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Edition: U.S. Article Comments (0) Email Print Reprints Read Super-rich investors buy gold by ton 04 Oct 2010 Drone strike kills 8 Germans in northwest Pakistan | 04 Oct 2010 U.S. sues AmEx, Visa, MasterCard, latter two settle 04 Oct 2010 Dieters need a good night's sleep to fight fat: study 04 Oct 2010 Iran blames Bushehr delay on "small leak," not virus 04 Oct 2010 Discussed 69 Health reform to worsen doctor shortage: group 61 U.S. apologizes for syphilis experiment in Guatemala 60 Ex-maid says Whitman knowingly employed her illegally Watched Uncovering the mysteries of the deep Mon, Oct 4 2010 Ocean census reveals deep secrets Mon, Oct 4 2010 Red faces over top model gaff Tue, Sep 28 2010 Japan and China agree to improve ties despite row Tweet This Share on LinkedIn Share on Facebook Factbox Ties and tensions between China and Japan Mon, Oct 4 2010 Related News China's Wen tells Japan disputed islets its territory Mon, Oct 4 2010 Japan to ask China to solve rare earth problems Mon, Oct 4 2010 Analysis & Opinion The Economist on the fallout from the China-Japan maritime row Related Topics World » Japan » China's Premier Wen Jiabao (R) arrives for a family photo with leaders and Foreign Ministers from Asia and the European Union and with Belgian King Albert during the Asia-Europe Meeting (ASEM) in Brussels October 4, 2010. Credit: Reuters/Yves Herman By Yoko Nishikawa TOKYO | Tue Oct 5, 2010 2:55am EDT TOKYO (Reuters) - Japanese and Chinese leaders said they wanted to improve strained ties, but both stressed their claims to islands at the heart of a bitter row, suggesting tensions between Asia's top two economies were far from over. The prime ministers of Japan and China met on Monday for the first time since a feud over a collision near disputed islands in the East China Sea last month soured ties, and agreed to start high-level talks to repair relations. "We both said the current situation is not desirable, and we confirmed a return to the starting point of improving our strategic mutually beneficial relations," Japanese Prime Minister Naoto Kan told reporters in Brussels after meeting Chinese Premier Wen Jiabao on the sidelines of an Asia-Europe summit. "We agreed to hold individual high-level talks on a suitable basis," Kan said, adding that he saw the disputed islands as Japanese territory. Kan, under heavy domestic fire for appearing to cave into Chinese demands in the row, did not say who would take part in the talks or when they would be held. The two leaders met for 25 minutes after a working dinner at the summit in Brussels, their first face-to-face contact since the captain of a Chinese trawler was detained after the incident near disputed islands in the East China Sea. The meeting was not announced in advance. Wen told Kan the islands -- called Senkaku in Japan and Diaoyu in China -- belonged to China but also said the two Asian giants must deepen their ties for the benefit of the people of the two countries, state media said. "The Diaoyu Islands have been Chinese territory since ancient times," Wen said during the conversation with Kan, the Xinhua news agency said in an English-language report. The row has hit supplies to Japan of rare earth minerals, vital for electronics and auto parts manufacturing and in which China accounts for about 97 percent of global total production. Japan buys around half of China's rare earth, but Beijing imposed a de facto ban on exports after the trawler incident. On Tuesday, Japan's trade minister Akihito Ohata said he would approach China about improving rare earth to Japan, citing a survey that showed more than 30 importers reported problems. Japan's Foreign Minister Seiji Maehara later told a news conference that diplomatic disputes such as the trawler incident should not affect economic ties. DISPUTED ISLANDS Sino-Japanese relations dived after Japan's Coast Guard detained the skipper whose boat collided with two Japanese patrol ships near the disputed but uninhabited islands. The islands are claimed by both countries and are near potentially huge oil and gas reserves. Four Japanese citizens employed by construction firm Fujita Corp were detained in China on suspicion of illegally entering a military zone, but three were subsequently released. 1 2 Next World Japan Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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