This is the second round of talks on the issue between China and Japan, after the first one on July 2-4 in Beijing left the two sides widely divided over their positions.

The Chinese team includes officials from the MOFTEC, the Ministry of Foreign Affairs, the Ministry of Finance and the Ministry of Agriculture.

Experts said they do not expect much to come out of the talks because neither side has shown a willingness to soften their stance.

Officials attending the talks are restricted to the level of departmental directors while experts believe it will take higher level officials to solve the issue.

A senior Chinese official said China was not prepared to lift its retaliative measures unless Japan announced an end to the investigation into three of its farm products.

The Japanese ministry of economy and industry declared last week that it would refrain from immediately initiating import curbs after the temporary measure expires on November 8.

But Japan said it would continue to investigate the case.

Japan launched the probe on December 20 last year with the period normally lasting 12 months but could be extended under exceptional conditions, according to Japanese law.

The Chinese official, who spoke on condition of anonymity, said the possibility of the issue stretching until after China's entry to the World Trade Organization (WTO) early next year could not be ruled out.

She warned that delaying the solution until then would put Japan at a great disadvantage following its decision to unilaterally impose protective measures against Chinese export.

Japan slapped temporary curbs on the import of onions, mushrooms and tatami rushes, mainly from China, from April 23 to November 8.

The move was widely believed to be politically motivated as the Japanese Government tried to win support from well-organized and politically powerful farmers in the election.

The Chinese Government retaliated on June 23, declaring to levy 100 per cent customs duties on the import of automobiles and parts, cellphones and air conditioners from Japan.

The two sides held a departmental-director-level talk on the issue between July 2 and 4 but failed to agree on anything, in line with expectations.

Chinese officials said it was up to Japan to end the row and that Japan's request for China to control its exports was unacceptable as these items were solely produced with Japanese technology, management and for the Japanese market as well as being in breach of WTO rules.

(China Daily 10/31/2001)