Despite strained political relations between China and Japan, trade is flowing, two-way investments are recovering and the trend is expected to continue in the near future, experts said.

A recent decline in the value of bilateral trade, as well as Japan's direct investment into China, was mainly caused by economic restructuring in both countries, though recent tensions were partly to blame.

"Trade flows between China and Japan will maintain a steady development and the value of Japan's exports to China and China's exports to Japan are showing signs of recovery," Hirohide Yamaguchi, chairman of the advisory board of Nikko Financial Intelligence Inc, told China Daily on Saturday.