Japan and China talk up cooperation, sidestep tensions

But after past years of icy hostility between Asia's two economic powerhouses, the muted ordinariness of Aso's visit was itself an achievement.

Japan and China are respectively the world's second and third biggest economies, and with the global slump battering exports and consumer confidence, they both have a lot at stake in avoiding diplomatic fireworks that could rattle markets.

China-Japan trade grew to $266.4 billion in 2008, a rise of 12.5 percent on 2007, but the slump has dragged down orders from both sides. China is Japan's top partner in total trade and its second-ranked destination for exports after the United States.

"With trade between our two countries falling sharply, both sides must strengthen communication and policy coordination," Hu told Aso, according to the official Xinhua news agency.

Hu and Wen in their separate meetings also nudged Aso over his recent ritual offering of a potted tree to the Yasukuni shrine for the war dead in Tokyo, despised by many Chinese who see it as a symbol of past Japanese militarism.

But they avoided any of the torrid denunciations that were common in earlier years over Japan's invasion and occupation of parts of China from 1931-1945.

Hu told Aso that it was important to "correctly grasp and appropriately handle historical problems", Xinhua said, avoiding mention of the shrine.

Ties between the Asian neighbours chilled during Junichiro Koizumi's 2001-2006 term as Japanese premier, largely over his visits to Yasukuni, which honours millions of war dead, including some convicted as criminals by a post-World War Two tribunal.

Relations have improved since then and Koizumi's successors including Aso have avoided pilgrimages to the shrine.

(Additional reporting by Chris Buckley in Beijing and Chisa Fujioka in Tokyo; Writing by Chris Buckley; Editing by Sugita Katyal) ((chris.buckley@reuters.com; +86-10-66271261)) ((If you have a query or comment on this story, send an email to newsfeedback.asia@thomsonreuters.com))

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