Japan and China have reached a basic agreement to set up an intergovernmental panel to prevent future trade friction, a Japanese trade official said.
Tokyo has proposed to Beijing that the two countries create what it tentatively called an economic partnership council. The two sides have agreed to do so at an early date, the Ministry of Economy, Trade and Industry official said in a meeting of the advisory Industrial Structure Council on Tuesday.
Japan hopes the bilateral panel will serve as a mechanism to prevent potential rows over excessive imports of Chinese products, much like what the United States attempted in a bilateral economic framework with Japan.
The two Asian neighbors have agreed to set up a panel next month to discuss production and trade levels of three farm products -- stone leeks, shiitake mushrooms and rush used in tatami mats -- over which they became embroiled in a heated trade dispute last year. A surge in imports of towels forced Japan to investigate whether to impose restrictions.