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Slideshow China, Japan stand their ground in islands row, but keep talking Tweet Share this Email Print Factbox Japan-China economic ties hurt as relations sour 12:39am EDT Related News Japan, China foreign ministers to meet on U.N. sidelines: media Tue, Sep 25 2012 ANA says 40,000 seat cancellations on Japan-China flights 3:58am EDT Analysis & Opinion Markets sagely dismiss Chinaâ€™s anti-Tokyo tantrums No BRIC without China Related Topics World » United Nations » Japan » Related Video China and Japan work to cool island dispute Tue, Sep 25 2012 Billionaire Wilbur Ross worried about China-Japan row 1 of 4. An aerial view shows Japan Coast Guard patrol ship (C) and Taiwan's Coast Guard vessel (top) spraying water at each other near the disputed islands in the East China Sea, known as Senkaku in Japan, Diaoyu in China and Tiaoyutai in Taiwan, in this photo taken by Kyodo September 25, 2012. A group of fishermen from Taiwan said as many as 100 boats escorted by 10 Taiwan Coast Guard vessels would arrive in the area later on Monday. Mandatory Credit. Credit: Reuters/Kyodo By Chris Buckley and Linda Sieg BEIJING/TOKYO | Wed Sep 26, 2012 3:58am EDT BEIJING/TOKYO (Reuters) - China claimed islands at the core of a row with Japan as its "sacred territory" in talks between the two countries' foreign ministers, Xinhua news agency said on Wednesday, as neither side showed any sign of backing down in a long-festering feud. Japanese Foreign Minister Koichiro Gemba urged China to exercise restraint at what he called a tense hour-long meeting over the dispute, which triggered violent anti-Japanese protests in China this month and is threatening ties between Asia's two biggest economies, Japan's Kyodo news agency said. Xinhua said Yang reiterated China's "solemn position on the issue of Diaoyu Islands, which have been China's sacred territory since ancient times". Japanese Chief Cabinet Secretary Osamu Fujimura told a news conference in Tokyo the two sides had agreed to keep talking. "There is no magic bullet in foreign diplomacy. We need to hold talks through various channels taking into account of broad perspective," Fujimura told a news conference in Tokyo. Sino-Japanese relations deteriorated sharply this month after Japan bought the isolated East China Sea islands, called Senkaku in Japan and Diaoyu in China, from their private owner, sparking the anti-Japan protests across China. In a sign of the economic fallout, Japanese automakers Toyota Motor Corp, Nissan Motor Co Ltd and Suzuki are curtailing production in China in the wake of the protests that shuttered dealerships and darkened their sales prospects in the world's top car market. China's meetings with Japanese diplomats - at the United Nations and a day earlier in Beijing - suggest Beijing does not want tensions over the island chain, believed to be in waters rich in natural gas deposits, to lead to a rupture in relations. This is, after all, the Year of Japan-China Friendship. But the unyielding tone of China's published remarks suggests that the row is far from over. Beijing has repeatedly called the islands its "sacred territory since ancient times". "The Japanese move is a gross violation of China's territorial integrity and sovereignty, an outright denial of the outcomes of victory of the world anti-fascist war and a grave challenge to the post-war international order," said Yang, according to the Xinhua summary of his comments. DOMESTIC DYNAMICS Sino-Japanese ties have long been plagued by China's bitter memories of Tokyo's military aggression in the 1930s and 1940s as well as present rivalry over regional resources and clout. The row coincides with a once-in-a-decade leadership change in China, while Japanese Prime Minister Yoshihiko Noda's ruling party faces a drubbing in an election expected in months, domestic dynamics that are make it hard for either side to retreat. Noda is under fire from the main opposition party, which picked former prime minister and security hawk Shinzo Abe as its new leader, and possible next premier, on Wednesday. Abe has been most vocal of the candidates in urging Tokyo take a tougher line in its territorial dispute with China and South Korea. Japan, which says the islands' purchase was meant to fend off a more provocative bid by the nationalist governor of Tokyo, Shintaro Ishihara, to have his metropolitan government buy them, is trying to keep communications channels open. China postponed a ceremony marking the 40th anniversary of the resumption of diplomatic ties with Japan, but an official at the Japan-China Economic Association said Toyota Motor chairman Fujio Cho and Hiromasa Yonekura, chairman of Japanese business lobby Keidanren, and other representatives of Japan-China friendship groups would attend an event on Thursday in Beijing. Patrol vessels from the two countries have also been playing a tense game of cat-and-mouse in the waters near the disputed islands, raising concerns that an unintended collision or other incident could escalate into a broader clash. (Editing by Nick Macfie) World United Nations Japan Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. 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. 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For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (13) Regular wrote: Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Connect with Reuters Twitter Facebook LinkedIn RSS Podcast Newsletters Mobile About Privacy Policy Terms of Use AdChoices Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us 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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