BOAO, Hainan Province: Vice-President Zeng Qinghong on Saturday urged Japan to respond seriously to President Hu Jintao's recent proposals on improving bilateral relations.

"Friendly Sino-Japanese co-operation is important to both countries, to Asia and even to the world," Zeng told Japanese Minister for Economy, Trade and Industry Toshihiro Nikai, who was attending the Boao Forum for Asia (BFA) annual conference 2006.

China-Japan relations are at a low point currently as Japanese leaders continue visiting the Yasukuni Shrine where 14 Class-A war criminals are honoured, despite protests from China and other Asian neighbours.

When meeting with leaders of seven Japan-China relationship organizations last month, President Hu urged Japanese leaders to draw a lesson from history, act with consideration of benefits of the two peoples and the future of bilateral ties. Hu also expressed willingness to hold talks with Japanese leaders as soon as they stop visiting the shrine.

Zeng told Nikai that China hopes Japan can approach the proposals seriously.

Nikai said China and Japan should work together to promote friendly co-operation, and Japan will promote exchanges and co-operation with China in environmental protection, intellectual property rights and tourism.

After the bilateral talks, Nikai told the press that both sides also agreed to seek a peaceful solution to the dispute over gas exploration in the East China Sea. "I expressed the idea that the East China Sea should be a sea of peace, instead of confrontation," Nikai said. "Vice-President Zeng agreed with that."

When addressing the opening ceremony of the BFA annual conference on Saturday, Zeng said China's smooth development will provide more opportunities for regional co-operation in Asia.

According to Zeng, China's gross domestic product will exceed US$3 trillion in 2010, with annual imports over US$1 trillion. Meanwhile, energy consumption per unit will be reduced by 20 per cent and emission of pollutants cut by 10 per cent.