Chinese President Xi Jinping and Japanese Prime Minister Shinzo Abe held formal talks on Monday for the first time since the two leaders took office, a breakthrough in ending a two-year row between Asia’s biggest economies over history and territory.

China and Japan, the world’s second- and third-largest economies, have sparred over disputed islands, regional rivalry and the bitter legacy of Japan’s wartime occupation of China.

The meeting between Abe and Xi, which took place in Beijing’s Great Hall of the People, came three days after the two countries agreed to work on improving ties and signaled willingness to put their rival claims over disputed islands on the back burner. They met on the sidelines of a gathering of Asia-Pacific leaders, Japan’s foreign ministry said.

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