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A new chance has emerged for the improvement and development of bilateral relations, Li said, urging the two neighbors to take new steps for their ties to progress and to bolster the confidence of the two peoples and of the entire worldwide community in the development of China-Japan relationship.

South Korean President Moon Jae-in and Chinese PM Li Keqiang have agreed that they want to see a guarantee of economic aid for North Korea if the nation agrees to denuclearize.

They also agreed to push forward regular meetings between defence officials and to set up a communication mechanism to avoid maritime incidents when their naval vessels meet in disputed waters.

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China had also resisted Japan's insistence that the agreement should not cover the territorial waters surrounding the islets, controlled by Japan.

A trilateral business summit attended by leaders and business representatives from Korea, Japan and China took place in Tokyo on Wednesday, jointly hosted by the Korea Chamber of Commerce & Industry, the Japan Business Federation and the China Council for the Promotion of International Trade.

China is willing to work with the LDP and Komeito to create a new future for China-Japan relations after all the rough times, the premier said.

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Since then, relations have slowly started to thaw although there have been flare-ups, with Tokyo accusing Beijing of sending navy vessels to the contested waters while Beijing has blamed Tokyo for fuelling tensions in the South China Sea, where China has territorial disputes with a number of Southeast Asian countries.

This is the best way to commemorate the signing of China-Japan Treaty of Peace and Friendship, Li told a reception marking the 40th anniversary of the treaty in Tokyo.

Li also referenced US President Donald Trump's recent protectionist rhetoric towards China, saying "we are all beneficiaries of free trade and even though various issues have emerged, these should not stand in the way..."

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Abe called on the two sides to turn competition into coordination. "China will also be able to learn from Japan's experience in finance and investment", Sun said.