Neighbors agree they'll 'gradually' resume talks

After impasse lasting years, China and Japan strike accord on historical, territorial issues

China and Japan reached a major breakthrough on Friday, with consensus on handling contentious historical and territorial issues after years of standoffs that soured ties between Asia's two largest economies.

The two countries also agreed to gradually resume political, diplomatic and security dialogues through various channels and to set up a crisis-management mechanism for the East China Sea, where tensions have been rising.