On June 19, 2008, Vice Foreign Minister Wu Dawei made comments on the principled consensuses reached between China and Japan on the East China Sea issue and answered questions of Chinese and foreign journalists.

Wu introduced China's principled position.

I. China and Japan reached three consensuses.

1. Making East China Sea a sea of peace, cooperation and friendliness.

2. Selecting a block in East China Sea for common exploitation under the condition of not undermining the legal positions of each other.

3. Japanese companies participate in the cooperative exploitation of Chuanxiao field in accordance with the Regulations of the People's Republic of China on the Exploitation of Offshore Petroleum Resources in Cooperation with Foreign Enterprises.

II. Two important preconditions for the China-Japan consensuses on the East China Sea issue

1. The consensuses shall not sabotage China's sovereign rights and jurisdiction on East China Sea or legal position and proposition on the issues related with East China Sea. China does not recognize the so-called "median line" of Japan and there does not exist the issue of drawing the "median line" between China and Japan.

2. Japan agrees to participate in the cooperation on Chuanxiao field according to the Chinese law, accept Chinese jurisdiction and recognize China's sovereign rights over Chuanxiao field. Cooperative exploitation can be found everywhere in the world. Foreign and Chinese companies both have such cooperative exploitations in China's coastal area and abroad respectively.

The Chinese oil companies concerned once cooperated with Unocal and Shell in Chuanxiao field and the latter two withdrew from the project later for commercial reasons. Japanese investors join in the development of Chuanxiao field in accordance with the Chinese law, which is exactly the same as Unocal and Shell.

III. China's position on the demarcation of East China Sea continental shelf

China upholds the principle of natural prolongation to solve the demarcation issue of East China Sea continental shelf, while Japan proposes the "median line". It is difficult to address such a dispute within a short period of time. Failing to properly handle the problem and allowing the escalation of the East China Sea issue, the overall situation of China-Japan relations will be disturbed. To ensure the steady progress of bilateral ties, China and Japan are determined to, under the conditions of not involving sovereign rights, make a transitional arrangement so that it will not hinder the stable development of bilateral ties. The consensuses on joint exploitation reached between China and Japan is just such a transitional arrangement.

As early as 30 years ago, the Chinese leaders have raised the concept of "putting aside disputes and making joint exploitation" to address issues of marine rights and interests. The consensuses on joint exploitation just reflect such a concept and comply with China's consistent position. The demarcation issue of East China Sea continental shelf still needs to be solved through negotiations.

IV. Proper settlement of the East China Sea issue serves the interest of both China and Japan

Both China and Japan are important countries in Asia and the world. The consensuses reach by the two sides show that China and Japan have the capability and sincerity to properly handle the sensitive issues of bilateral relations through dialogue and consultation. The settlement of the issue is beneficial to the pace and stability of East China Sea, the mutually beneficial cooperation between China and Japan in the field of energy and the stable and healthy development of China-Japan relations. The improvement and development of China-Japan relations serve the fundamental interest of both countries and their people and are beneficial to the peace, stability and development of Asia and the world at large.

Wu Dawei then answered questions of the journalists

On the question of Japanese legal person' participation in the exploitation of Chuanxiao field in accordance with the Chinese law, Wu said that joint exploitation is a try in the international market. To put it specifically, so far there are more than 20 countries having made temporary arrangement on marine disputes through consultation. The consensuses reach between China and Japan are not unprecedented. On joint exploitation, we propose putting aside sovereign disputes, which means neither the Chinese nor the Japanese propositions are affected. Under such circumstances, we choose an area which is acceptable to both for joint exploitation. The area of joint exploitation follows neither Chinese nor Japanese law but the principles and rules agreed by the two governments.

The cooperative exploitation of Chuanxiao field is totally different from the joint exploitation of other sea areas. The biggest difference is that the development of Chuanxiao field must observe the Chinese law which I have explained earlier. It means that the sovereign right of Chuanxiao field belongs to China, which must be clarified.

On the specific steps of joint exploitation, Wu noted that China and Japan should make further consultations on no matter joint exploitation or cooperative exploitation with Japanese investors in the future. As to joint exploitation, the governments and the businesses of both countries should participate in the consultations, but he believes such kind of consultations might be guided by the governments. For Chuanxiao field, the businesses of China and Japan make consultations and the two governments only give guidance.

On the question why China and Japan now can reach agreement on the East China Sea issue, Wu said it is clear that China-Japan relations encountered severe difficulties a few years ago and it is recognized by China, Japan and the international community. China-Japan relations started changing from 2006 and since then with the joint efforts of the governments, leaders and people of both countries, the bilateral ties have been improved and developed continuously. China and Japan have established the strategic and reciprocal relations which define the new concept and thought for the development of bilateral ties in the new century.

Premier Wen Jiabao visited Japan in April last year and President Hu Jintao paid a state visit to Japan in May this year. Both sides exchanged in-depth opinions on strengthening the strategic and reciprocal relations between China and Japan and reached extensive consensuses. China supports Japan in following the road of peaceful development while Japan supports China's peaceful development, which is a very important consensus. Both sides agreed to appropriately solve various problems of bilateral relations through consultation, which is also a key consensus. Of course, the important consensuses reached between the governments and leaders of both countries are far more than that.

The atmosphere of China-Japan relations has changed since President Hu's visit to Japan. For example, after Sichuan of China suffered massive earthquake, the first foreign rescue team came from Japan, and of course China's Taiwan province also sent a rescue team. The first foreign medical team came from Japan, and the Japanese government provided financial and material assistances twice to the disaster-hit regions, which is an important mark of the improvement of China-Japan relations. Our two sides have better communication conditions on some sensitive issues, which I have personally felt. For instance, when I exchanged opinions with the Japanese ambassador and officials of the Japanese foreign ministry in Beijing, we could take into consideration the concerns of each other. Today, world multi-polarization and economic globalization move forward rapidly. In fact, the trend of globalization occurs in not only the economic sector but also various fields of the society, including culture and different ideologies. Against such a background, it is especially imperative to properly handle the relations between countries.

There are some questions left over from history, such as the issue of Diaoyudao islands which were put under the trusteeship of the US after the World War II. At the beginning of the 1970s, the US government shifted those islands to Japan, and at the same time the US State Department issued a solemn statement that what it shifted to Japan is the administration not the sovereign right over those islands. The US understood that countries related with the sovereignty of those islands hold different propositions. It is very clear that it is a historical issue and we should address it in the historical process. We should not hurry up to solve it at present when the conditions are not yet mature. Otherwise, the only way of no matter Japan or China will be by no means a peaceful way, which will definitely hurt the China-Japan relations seriously. Mr. Deng Xiaoping once said that our generation was not clever, but we believed our offspring would be cleverer than us and able to find out the solution acceptable to both sides.

China and India share more than 4,000 km of border line which was once fairly sensitive. For example, no matter Chinese or Indian, if they chopped trees or lumbered across the border, they would be arrested immediately for crossing the boundary illegally. The soldiers of China and India standing face to face at the two sides of the border never talked to each other. However, China-India relations have experienced great changes in recent years. The two sides established the strategic partnership. The governments and leaders of both countries properly solved the issue from the strategic and comprehensive perspective. China and India reached the consensus that both sides make efforts to ensure the tranquility of the border area so that the bilateral strategic cooperation in other fields would be not influenced by the border issue, if not settled.

I talked about India. It has nothing to do with Japan. I just try to demonstrate that to properly handle sensitive issue is a necessary condition of developing country-to-country relations. Without such a condition, the country-to-country relations will encounter problems and the whole world will be in a mess. Therefore, China-Japan relations have witnessed a huge change, especially after President Hu's visit to Japan. It is a historic change, and that's why we say China-Japan relations stand at a new historic starting point. Around President Hu's visit to Japan, China and Japan conducted in-depth consultation on the East China Sea issue. Such consultation started achieving progress after Premier Wen's visit to Japan in April last year. Consultations had been conducted earlier, but without progress. China and Japan held completely opposite propositions. After 2006, China-Japan relations have been improved remarkably, which creates necessary conditions for the two countries to reach consensuses and understanding on the East China Sea issue. So just now the journalist from Phoenix TV was correct in saying that with the improvement of China-Japan relations it would become easier to solve sensitive issues. I believe that the settlement of the East China Sea issue indicates China and Japan are also capable of solving other sensitive and complicated issues of bilateral relations.

On the improving opinions of the Chinese public about Japan, Wu said it is clear to all that China and Japan have both a history of more than 2,000 years of friendly exchanges and a tragic historical period. In the new century, China and Japan believe that joint efforts be made to pass on the friendship between the two peoples from generation to generation. As to the Chinese public opinion about Japan, I think our Japanese friends are clearer than me. It should be said that the Chinese people and the Japanese people support China-Japan friendship. So long as the governments of both countries make active efforts in line with the consensuses reached by their leaders, the people, especially the youth of the two countries strengthen exchanges and increase mutual understanding, the two governments carefully handle the complicated and sensitive issues of bilateral ties, enhance strategic mutual trust and deepen the mutually beneficial cooperation, China-Japan relations will enjoy a promising future and be supported unswervingly by the two peoples. We believe that the goal of passing friendship from generation to generation between the Chinese and Japanese people will definitely be realized.