Chinese Vice President Hu Jintao told a delegation of Japan's ruling coalition Sunday that peaceful ties between the two countries will benefit both, and suggested Japan exercise caution over contentious issues relating to Japan's militaristic past.

"If Japan and China deal peacefully with each other, it will benefit both of them. If they fight with each other, they will suffer great damage," said Hu during a meeting with the delegation in the seaside resort of Beidaihe, east of Beijing.

"If Japan and China follow the policy of looking toward the future by making history serve as a mirror, they can achieve a sustainable friendship," Hu said, according to Japanese officials.

The vice president was apparently urging Japan to be aware that ties may be damaged by Prime Minister Junichiro Koizumi's planned visit to Tokyo's Yasukuni Shrine and the furor over a Japanese junior high school history textbook penned by nationalist historians.