It is reported by the website run by Global Times that Chinese companies welcomed the participation of Japanese legal person in the development of the Chunxiao gas field in accordance with Chinese laws.

Companies or legal persons of both countries will negotiate in line with Chinese law governing cooperation with foreign enterprises in the exploration and exploitation of offshore petroleum resources.

Liu Nanlai, a research fellow with the law institute of the Chinese Academy of Social Sciences, said that such cooperation is a way for Chinese companies to attract foreign capital in compliance with the Regulations of China on the Exploration of Offshore Petroleum Resources in Cooperation with Foreign Enterprises.

Liu said the exploration of Chunxiao gas field is China's assertion of sovereign rights in its inalienable sea water.

The Japanese legal person, who abides by Chinese laws, could gain the qualification of participating in the development of the Chunxiao gas field through signing commercial contracts. This is virtually the same as foreign companies bidding for the gas exploration of the Chinese oil companies, said Liu.

"So far, Chinese oil companies have carried out such cooperation with foreign oil companies many times and achieved good results," Liu said.

He said, such cooperation is the first step of joint development of the East China Sea, which will be conducted in the transitional period before the delimitation of the area.

As a result, the joint development of the East China Sea cannot be carried out according to Chinese or Japanese laws alone, but needs the two sides to make special arrangements through negotiations and to sign agreements, said Liu.

(Xinhua News Agency June 19, 2008)