"The joint exploration is a transitional step to protect each other's legal positions till a demarcation line is set," the statement said.

Jiang called the agreement "an important step" to realize the common goals of the two countries to make the East China Sea "a sea of peace, cooperation and friendship".

The two countries reached the mutually beneficial agreement through consultations, aimed at seeking common ground and shelving the differences, she said.

The result is conducive to enhancing mutually beneficial cooperation on energy and other areas, and taking Sino-Japanese relations to a higher level, Jiang said.

In Tokyo, Japanese Foreign Minister Masahiko Komura told a news conference: "It is a welcome development in Japan-China relations and a specific achievement in our strategic relations."

Komura said the agreement "serves mutual benefits and interests".

(Xinhua News Agency June 19, 2008)