Indian Prime Minister Narendra Modi has hailed a "special strategic and global partnership" with Japan, the second-largest economy in Asia. Japan is aiming to expand free trade relations amid US' protectionist policies.
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The Indian leader arrived in Japan on Saturday on a two-day official visit and was set to hold talks with his Japanese counterpart, Shinzo Abe.
Abe is set to host a luncheon for Narendra Modi on Sunday at a resort area near Mount Fuji.
Modi, who has met with Abe 12 times since becoming prime minister in 2014, will attend the 13th India-Japan annual summit on October 28 and 29. He'll then have an official meeting with Abe on Monday, after which the two leaders will issue a joint statement.
Trade and security will be high on the summit agenda and during the talks between Abe and Modi.
"The India-Japan partnership has been fundamentally transformed and it has been strengthened as a 'special strategic and global partnership,'" Modi told Japan's Kyodo news agency.
"There are no negatives but only opportunities in this relationship which are waiting to be seized," he added.
Indian PM Modi is also a strong advocate of free trade and wants Asian countries to increase economic cooperation.
Japan's Foreign Ministry said Saturday that Abe and Modi had lunch on Sunday at a hotel in Yamanashi Prefecture, west of Tokyo, and discussed ways to keep the Indo-Pacific region "free and open" for trade.
Abe also briefed Modi about his discussions with Chinese authorities.
Under pressure from the US, China and Japan are seeking to mend ties and forge closer economic relations. But it is easier said than done; the two countries must overcome a number of political and territorial disputes.
Image: Getty Images/AFP/Jiji Press
Efforts to normalize ties
Shinzo Abe became the first Japanese leader to visit China since 2011 when he arrived in Beijing on October 26, 2018. Ties between the two countries have been fragile since diplomatic relations resumed in 1972. There are still plenty of issues to be resolved, but the relationship is at a "historic turning point."
Image: picture-alliance/Jiji Press/K. Sumiyoshi
Under pressure from Washington
Experts say that US President Donald Trump's trade protectionism is the major reason behind Chinese-Japanese coziness. China and the US have been locked in a major trade dispute, with both countries imposing reciprocal tariffs worth billions of dollars. Vowing to put "America First," the Trump administration also targeted Japanese exports to reduce US trade deficit.
Image: picture-alliance/AP Photo/A. Harnik
Economic benefits
China is Japan's biggest trading partner and many Japanese companies have invested large sums in the country. While Japan is eager to access China's massive market, China is interested in Japan's technology and corporate expertise. China and Japan – the world's second and third biggest economies, respectively – believe that more economic cooperation would minimize US pressure on them.
Image: Reuters/R. Pilipey
Mutual mistrust
But an increased economic cooperation would require the leaders of the two nations to overcome a number of political and territorial disputes. Tokyo is wary of Beijing's increasing political clout in Asia and its territorial aggression in both the East and South China seas. China sees Japan's military alliance with the US as a strategic move against its regional interests.
Image: Reuters
Disputed islands
Beijing and Tokyo have unresolved territorial disputes involving a group of uninhabited islands, called Senkaku in Japan and Diaoyu in China. They are currently administered by Tokyo, but Beijing claims sovereignty over them. Tensions over the islands have seriously damaged Sino-Japanese relations, which remain fragile after Japan's wartime occupation of parts of China during World War II.
Image: DW
World War II killings
The Japanese stance on Nanjing killings has often been an obstacle in Sino-Japanese relations. In the run-up to World War II, the Imperial Japanese Army unleashed a six-week reign of terror during which it reportedly carried out mass killings and rapes in the city of Nanjing. Japan now admits "the killing of a large number of non-combatants," but continues to downplay the intensity of the event.
Image: AFP/Getty Images
How to deal with Pyongyang?
The North Korean conflict remains a contentious issue between China and Japan. While Japan wants a complete denuclearization of the North, China remains the biggest backer of the Kim regime in the region. On October 26, 2018, PM Abe said his country is committed to normalizing ties with Pyongyang, but several issues, including North Korea's kidnapping of Japanese citizens, must be resolved first.
Image: Getty Images/AFP/E. Hoshiko
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China's assertiveness
The two-day summit in Japan would also take into account security issues and China's growing influence in the region.
Despite its willingness to bolster trade ties with China, Japan is wary of Beijing's military assertiveness in the East and South China Sea area.
Abe said he will have an exchange of views with Modi on how to "deepen our cooperative ties for peace and prosperity in the Indo-Pacific region," according to Japanese media.
India has a long-standing rivalry with China and the two countries have been locked in territorial disputes for decades.
India and Japan are set to hold their first joint military exercises next month.