A senior Chinese politician hopes to pave the way for Beijing and Tokyo to hold the first formal meeting between their leaders on the sidelines of a regional summit in November, a source familiar with the matter said Thursday.

"China also wants to create the environment for mutual concessions. It is important to have the environment of both sides making efforts to aim for the meeting," the source quoted Wang Jiarui, head of the International Department of the Communist Party's Central Committee, as saying when he held talks with Japanese opposition lawmakers Monday in Beijing.

"Leaving this situation as it is will damage both countries," he was quoted as saying. "There are adverse effects on corporate activities and investment. We have to find a way out of the difficulties."