China, Japan and South Korea started a second round of talks on Tuesday over the establishment of a free trade agreement in what is considered by close observers to be still at the exploratory stage.

"The first round of negotiations witnessed big differences among the three sides," said Zhang Yunling, director of International Studies at the Chinese Academy of Social Sciences. "The talks are still at the technical level as the parties seek ways to reach a common view on the negotiation framework, including sensitive areas for each country. It may take two to three rounds of talks before they can get to substantive negotiations."

In November 2012, the three countries started making moves to build an FTA in Northeast Asia. It will be an important component of the Regional Comprehensive Economic Partnership once established. The first round of negotiations was concluded in March in Seoul, covering issues including mechanisms, negotiation methods and problem areas.