Chinese President Hu Jintao says Japan has nothing to fear from the development and rise of China.
In a televised speech Thursday at a university hall in Tokyo, Mr. Hu said the two countries can benefit from each other's peaceful development.
President Hu also addressed the sensitive issue of Japan's occupation of parts of China in from the 1930s through World War Two. He said it is important to learn from history, but that China holds no grudges. Beijing has long accused Tokyo of failing to atone properly for wartime atrocities in occupied China, angering Japanese nationalists.
Mr. Hu also thanked Japan for assistance in China's post-war development.
As he spoke, crowds of students outside the hall protested against China's policy in Tibet, waving Tibetan flags and chanting anti-Chinese slogans.
During his five-day visit to Japan, the first by a Chinese head of state in 10 years, Mr. Hu stressed good ties and cooperation between Asia's two economic giants. Today, he also engaged in a ping-pong match with a popular Japanese player.
After a formal summit Wednesday, Mr. Hu and Japanese Prime Minister Yasuo Fukuda agreed to hold regular meetings and work together on issues including climate change, territorial disputes and global issues.
Mr. Fukuda praised China for holding talks with representatives of the Dalai Lama, the exiled spiritual leader of Tibet, in the wake of Beijing's crackdown on anti-government protests in the Himalayan region.
Still, some tensions remain. Japan's Ministry of Economy, Trade and Industry issued a report today criticizing China's lax enforcement of pirated and counterfeited products and various allegedly unfair trade practices.
The Japanese leader expressed hope for a successful Beijing Olympic Games, but said he has not decided whether to attend the opening ceremony in August.
Despite tense relations in recent years, trade between the two Asian nations has steadily grown -- totaling nearly 237 billion dollars last year.