Chinese premier hopes Japan, China can meet halfway, keep relations on right track

BEIJING (Reuters) -Chinese Premier Li Qiang said he hopes Japan can meet China halfway and keep bilateral relations on the right track, state media reported, as the two countries try to ease escalating tensions in the region.

In talks with Japanese Prime Minister Shigeru Ishiba on Thursday on the sidelines of a conference of the Association of Southeast Asian Nations (ASEAN), Li also said he hoped China and Japan can continuously strengthen dialogue and cooperation, according to the official Xinhua news agency on Friday.

Li noted that the two countries should jointly safeguard the stability and smooth flow of industrial and supply chains and the global free trade system.

Li made the comments after the leaders' meetings on East Asia cooperation held in Vientiane, Laos, Xinhua news reported.

Ishiba said that Japan has no intention of decoupling or severing industrial and supply chains with China, and that his country is willing to work with the world's second-largest economy to strengthen high-level exchanges, intensify dialogue and communication at all levels, Xinhua reported.

Ishiba, who became Japan's new prime minister late last month, also said his country wants to resolve pending issues through consultation, and firm up talks with China on international and regional issues.

The meeting comes days after China's top diplomat had a phone call with Japan's new foreign minister over several issues affecting the two countries, as relations soured over China's increased military activity near Japan's territorial waters.

(Reporting by Bernard Orr; Editing by Jacqueline Wong and Sonali Paul)