welcome to "newsline." i'm keiko kitagawa in tokyo with the latest at this hour. japanese and chinese representatives were supposed to come together saturday to celebrate the relationship their nations share. but instead they turned their backs on each other and counseled events marking the 40th anniversary of diplomatic

ties. they are locked in a dispute over the senkaku islands over the east china sea. japanese prime minister tanaka and chinese premier signed a joint statement in 1972 to normalize diplomatic ties. the countries have built strong economic links ever since. many japanese companies have moved into the chinese market. china is now japan's biggest trading partner. still arguments over history and territory have plagued the relationship. the japanese government's nationalization of the senkaku islands earlier this month triggered the worst falling out in years. china claimed the territory. chinese express their anger by holding large demonstrations. some crowds damaged japanese supermarkets and factories. the civil and political attention prompted both people in both countries to scrap

ceremonies marking diplomat relations. delegates attending the assembly in new york watched the tensions simmer all week. diplomats from both countries show the world they were a long way off from finding common ground. >> translator: the islands are inherently chinese territory and there is indisputable historical evidence tho demonstrate this fact. japan stole them in 1985 at the end of the japanese war. >> chinese foreign minister chi called the nationalization a unilateral action that grossly violates china's sovereignty. he said it constitutes a grave challenge to the international order and to the u.n. charter.

reply to refute china's claim. >> from 1885, surveys of the senkaku islands has been conducted by japan. through these surveys, it was confirmed the senkaku islands have not only been uninhabited, but showed no trace of being under control of china. >> china's ambassador then presented his own rebuttal. he accused japan of blatantly distorting history. this territorial dispute isn't just creating political friction. japanese companies in china are feeling the chill and seeing the impact on their bottom line. nhk surveyed four japanese firms. stores have removed jvpz products from their shelves. because of the producing delay

and customs. representatives of one retail say sales from plunged 30% to 40% from the seasonal average. spokespersons for the japan external trade organization says one japanese company lost a contract it landed with a local chinese government. a non-japanese rival ended up getting the work. government officials have put orders on hold. now, the people who run japanese businesses in china are also worried about man power. they're having trouble getting visas for workers coming in from japan. officials at japan's foreign ministry say managers at japanese firms are complaining they can't get letters of invitation from the chinese. companies need those letters to obtain visas for stock they want to send to china. but chinese authorities are telling them they can't issue

the documentation right now. japanese representatives say the contract report procedures for handing out visas have not changed. they're promising to keep a closer watch on how chinese officials deal with chinese applications. communist party officials in china have answered questions that have been swirled for weeks by making two key announcements. they set a date for when their transition of power will again. it's november the 8th. and they decided on the punishment. his case expoedsed the darkest side of china's power structure. michitaka yamaoka has more from beijing. >> reporter: chinese media are reporting the communist party will transfer both case to judicial authorities. he allegedly accepted large

bribes and had improper relations with numerous women. the highest ranking communist party official in chongqing. he was expected to join the party's top this year. but a series of incidents led to his downfall. his former aide temporarily fled to the u.s. consulate in february. officials cited bo for discipline. they suspended him from the post he held in the bureau. then in july, police charged bo's wife and her aide with murdering businessman haywood. hounded her in august. the state run news agency says that in the haywood case, bo abused his powers.

making a decision on both future frees up chinese leaders to focus on the transition of power. delegates from across the country will convene in beijing to attend november's congress. the meeting happens every five years. delegates to the 18th congress on the communist party are expected to approve new policies. they will also appoint the next generation of party leaders. vice president ping is ready to succeed jintao. observers are focusing on how

both will affect the party's new leadership appointments at the upcoming party congress. michitaka yamaoka, nhk world, beijing. now on a lighter note, a claim that da vinci created an earlier version of the mona lisa. presented what they claim is the predecessor of the masterpiece. they say experts studied it for 30 years. foundation members say the painting was found in britain at the beginning of the last century. they say it predates the mona lisa because it's on older canvas. the painting is almost the same proportions as the mona lisa. the woman looks younger and has a similar smile. the biggest differences are the pillars on either side. sketches by da vinci's apprentices showed her flanked by pillars. they say several documents

suggests the artist painted two versions. art experts doubt the foundation's claims. they say he rarely painted on canvas. they say the second mona lisa is likely a copy by a later artist. the woman's facial expression is nothing like the mona lisa's smile. here's the three-day world weather forecast.

that's all for this hour on "newsline." i'm keiko kitagawa in tokyo. thank you for joining us.