TOKYO - Japanese Prime Minister Naoto Kan planned to launch a panel of experts on China issues to shore up Japan's relations with its Asian neighbor, a top government official said Friday.

Chief Cabinet Secretary Yukio Edano told a news conference that the panel was aimed to discuss how to improve Japan's ties with China in the medium and long terms through insights from the private sector.

In last September, Japan seized a Chinese fishing boat and its crew on waters near the Diaoyu Islands, over which China claims sovereignty. It returned the fishermen and trawler after repeated and strong protest by China.

Japan's handling of the issue saw its diplomatic relations with China reach the lowest level in decades and drove a wedge through the bilateral ties.