Japan and China should resolve a bilateral row over gas projects in the East China Sea through dialogue, Economy, Trade and Industry Minister Shoichi Nakagawa said Friday.

His remarks followed protests by Beijing over Tokyo's decision to grant test-drilling rights in a disputed area to a Japanese oil company.

"China recognized that it is in a dispute (with Japan) over the sea area," he told a news conference. "I want the country to sincerely discuss the matter."