China has offered to repair damage the Japanese embassy in Beijing sustained during recent violent protests, but is rejecting Tokyo's demand for an apology.
Beijing says Japan is to blame for starting the dispute, which centers on a new Japanese history textbook critics say overlooks Japan's brutal military occupation of much of Asia before and during World War II.
Approval of the book sparked three weeks of angry protests in China.
Tokyo has proposed a meeting between Prime Minister Junichiro Koizumi and Chinese President Hu Jintao at the upcoming Asia-Africa summit in Indonesia. UN Secretary General Kofi Annan has also urged the two leaders to meet and resolve their differences.
Some information for this report provided by AP, AFP and Reuters.