China and Japan Agree on Joint Gas Exploration of East China Sea

Historical enemies China and Japan have reportedly agreed to jointly develop gas deposits in the East China Sea, raising hopes for a breakthrough on one of the most contentious issues dividing east Asia's two most powerful nations.

The deal will allow Japan to invest and claim a share of the profits in two China-operated gas fields in the dispute waters, according to the Kyodo news agency.

Citing Japanese foreign ministry sources, the agency said the two nations would sign an agreement on the exploration of the the Chunxiao and Longjing fields, which are known in Japan as Shirakaba and Asunaro.

The fields are located near the median line between the two nations' territorial waters, but no agreement has been struck on the more contentious issue of fixing a demarcation line between the two sides.

The compromise, however, is a step forward for the two nations, who have recently tried to overcome territorial disputes and conflicting views of Japan war atrocities.

Anti-Japanese sentiment remains strong in China, where major demonstrations flared up in several cities in 2005 against their neighbor over school history books, contested oil supplies and territorial rivalries.

Many Japanese are also concerned about the rapid rise of China and its impact on regional security and the environment.