China is seeking to present a positive face and limit potential disagreements as leaders arrive for the Asia-Pacific Economic Cooperation (APEC) summit, which is taking place in Beijing over the next few days.<br /><br />It is reported to have agreed with Japan to find ways to keep the lid on a long-running dispute over a group of uninhabited islands. <br /><br />The two countries will gradually resume political, diplomatic and security dialogue, China’s foreign ministry said in a statement following a meeting between China’s top diplomat, Yang Jiechi, and Japanese Prime Minister Shinzo Abe’s national security adviser, Shotaro Yachi.<br /><br />China and Japan acknowledge that “different positions exist between them” regarding tensions over the East China Sea islands, known as Senkaku in Japan and Diaoyu in China.<br /><br />But Japan must face up to and properly handle sensitive issues such as history and the islands, Yang was quoted as saying in a statement.<br /><br />The Chinese are also cooling the rhetoric on trade disputes and their backing for a new multilateral bank seen as a rival to US-backed institutions.<br /><br />But other sources of conflict loom beyond their control.<br /><br />The issue of Ukraine could pit Barack Obama against Vladimir Putin.<br /><br />Australia’s prime minister Tony Abbott has vowed to confront the Russian leader over what he calls the “murder” of Australians in the downing of Malaysia Airlines flight MH17.<br /><br />Under President Xi Jinping’s leadership the APEC summit is the first big international event China has hosted.<br /><br />It is being treated as “this year’s Olympics” according to one Beijing-based diplomat.<br /><br />The summit is certainly the most important event the city has held since the 2008 Games.<br /><br />In an effort to make sure Beijing’s notorious smog doesn’t mar proceedings, some factories as far as 200 kilometres away are being closed.<br /><br />Driving restrictions are being introduced in the capital and neighbouring cities to reduce traffic and cut air pollution.
