DHAKA: China and Japan have agreed to try to reduce tensions over a disputed chain of islands in the East China Sea.

Beijing officials said a crisis management mechanism had been set up to prevent the situation from worsening.

The strategically important islands, known as Diaoyu by China and Senkaku by Japan, are controlled by Japan, reports the BBC.

It is a diplomatic breakthrough which media reports say could lead to a meeting between Japanese PM Shinzo Abe and Chinese President Xi Jinping.

The reports suggest they may meet on the sidelines of the Apec summit in Beijing next week.

If it happens the meeting will be the first proper exchange between the two leaders since they came to power, in 2012 and 2013 respectively.

The Chinese foreign ministry said in a statement that senior Chinese and Japanese officials had reached a four-point agreement, which included a recognition of their ‘different positions’ over the islands.

They had agreed “to prevent the situation from aggravating through dialogue and consultation and establish crisis management mechanisms to avoid contingencies”, the statement added.

BDST: 1842 HRS, NOV 07, 2014