Japan and China have reached an agreement on gas development projects in the East China Sea. By shelving differences over the demarcation of exclusive economic zones (EEZs), the two countries achieved a compromise that will contribute to more stable and deeper bilateral ties.

The agreement is the product of efforts to mend Japan-China relations dating back to a Beijing meeting in the fall of 2006 between then Prime Minister Shinzo Abe and Chinese President Hu Jintao. Mr. Hu's visit to Japan in May and his meeting with Prime Minister Yasuo Fukuda further consolidated such efforts.

Both Mr. Fukuda and Mr. Hu may have had their own reasons for concluding the deal. Mr. Fukuda, suffering from low domestic approval ratings, may have sought a political achievement in foreign affairs and Mr. Hu may have wanted to solidify ties with Japan ahead of the Beijing Olympics in August. At any rate, both leaders have chosen to compromise for the sake of promoting a "mutually beneficial strategic relationship."