China and Japan are holding talks Monday in Beijing on the wrangling over energy and territory in the East China Sea.

Bearing testimony to each party's desire to pursue a peaceful resolution to the thorny issue, the dialogue itself has given out a positive signal.

It is expected to lay the necessary groundwork for the process of negotiations to finally end the long-running demarcation dispute, which is one of several major disagreements.

To look for a mutually acceptable settlement, the two countries must remember that each party's concerns must be addressed while their own propositions are put forward if any real dialogue is to become final consensus.

Japan has unilaterally demarcated a controversial exclusive economic zone along the median line.

It holds that the line is the two countries' coastlines, but it is in fact on the continental shelf of the Chinese side on which China insists it enjoys exclusive rights.

China's oil and gas explorations in the East China Sea are being carried out in China's indisputable coastal waters and are a matter within the scope of China's sovereignty.

Given the important role energy issues play in the two economic giants, communication between them is bound to have a huge bearing on state-to-state relations.

Sino-Japanese synergy over energy is a distinct possibility.

Cooperation can avoid excessive competition that not only causes oil prices to spike, but triggers political friction.

There are many aspects in which China and Japan have a close affinity.

Both share a common interest in protecting the sea-lanes through which crude oil is shipped.

More than half of China's imported oil is from the Middle East and about 80 percent of the imports are shipped through the Straits of Malacca -- as is the case for Japan.

The overlapping oil transport channel leaves room for cooperation, especially as severe security issues arise due to piracy, which has resulted in financial loss in the past.

Still, it is unrealistic to expect a breakthrough in the short term.

To push for substantial results in the peace talks, it is imperative to cultivate a sense of mutual trust between the two sides.

The two neighbors will have nothing to gain and everything to lose from a conflict.

With the fresh talks kicking off, patience, sincerity and flexibility on both sides are needed to ensure long-term peace and stability in the region, no matter how arduous and plodding the process might be.

(China Daily October 25, 2004)