Talks between China and Japan in Beijing on Thursday failed to resolve their trade dispute as expected -- but the two sides called the meeting "friendly and productive."

A joint statement said the two sides exchanged their views "frankly and in-depth," enhanced their mutual understanding and expanded their common ground through the talks.

"Active consultation should be continued to explore ways to resolve the issue and the two sides agreed to have another non-government talk as early as possible," said the statement.

The first non-government meeting involving Chinese exporters and Japanese producers was organized in September.

But Japanese officials indicated the issue was unlikely to be resolved in the near future.

At a press conference after the talks, Tanaka Hitoshi, director-general of Asian and Oceanian Affairs Bureau under Japan's Ministry of Foreign Affairs, and Sano Tadakatsu, director-general of Trade Policy Bureau under Japan's Ministry of Economy, Trade and Industry, said no ministerial meeting was being arranged at present.

Experts believe a ministerial or higher-level meeting is essential to solving the issue.

Both the two talks in Beijing -- one between July 2 and 4 and the other on Thursday -- were limited to department director level.

( China Daily November 2, 2001)