HONOLULU - President Hu Jintao on Saturday told Japanese Prime Minister Yoshihiko Noda that the two sides should handle disputes properly to maintain bilateral ties.

Hu stressed that both nations should use dialogue to solve disputes.

"For a long time, both sides have cultivated abundant consensus and understanding in handling sensitive matters. This should be followed and preserved," Hu said.

It's the first time the two leaders have met since Noda became prime minister in early September. Ties between China and Japan, the two neighboring giants in Asia, have fared better recently. Their relations suffered in September of last year after Japan detained a Chinese fishing boat that collided with Japanese coast guard ships near the Diaoyu Islands in East China Sea. Tie began to warm after China sent relief aid to Japan after it was struck by a 9.0-magnitude earthquake this March.

In his meeting with Hu, Noda said China's development means "huge opportunity" to Japan, saying the China-Japan ties is important not only to the two countries but also to the world.

"The two sides should take an overall view and develop bilateral ties steadily," Noda said.

Japan is ready to work with China to enhance their cooperation and deepen relations, Noda said.

Noda also proposed to deepen the understanding of peoples from the two countries and to improve ties on the grassroots level. Noda also pledged to properly handle disputes between the two countries.

Analysts believe the meeting between the two leaders will be beneficial to bilateral ties. Caught in a regional competition, some Japanese politicians have in recent years adopted skeptical tones regarding China.

Some experts said Japan's new administration has adopted a twin-track approach in dealing with Beijing as its main rival in the Asia-Pacific region, showing caution on security issues but cooperative with economic issues.

Mainichi Shimbun, a major newspaper in Japan, recently described Noda's foreign policy as "leaning toward a Japan-US alliance, countering China, and lacking diplomatic channels with China".

Despite taking a suspicious and critical stance toward China on the strategic and security fronts, Japan is hoping to make economic deals with China, the second-largest economy in the world and Japan's largest trading partner.

In his interview with the Financial Times recently, Noda stressed Japan wanted a "win-win" strategic partnership with China.

Japanese Foreign Minister Koichiro Genba will visit Beijing on Nov 22 and 23 in preparation for Noda's first visit to China, according to the Kyodo News Agency. Noda has already visited the US and South Korea since taking office.

China Daily