Why has China, Japan and South Korea resumed economic dialogue?

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  Daily news and analysis.

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  This is World Today.

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  Hello and welcome to World Today.

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  I'm Dinghund in Beijing.

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  Coming up, China's factory activity growth hit one year high.

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  China, Japan and South Korea agree to strengthen free trade.

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  Pentagon chief praised Japanese troops during a particular key World War II battle,

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  sparking criticism.

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  And China has issued first ever operation certificates for autonomous passenger drones.

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  China's manufacturing activity has expanded at the fastest pace in one year.

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  The official purchasing managers index came in at 50.5 in March.

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  The subindex for production edged higher to 52.6 and that of new orders climbed to 51.8 pointing to improvement in terms of manufacturing supply and demand.

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  In February,

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  the official PMI figure sprang to an expansionary territory from a contraction back in January.

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  Also on Sunday,

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  four state owned banks in China announced the plans to raise a combined 520 billion yuan or more than US$70 billion to increase their ability to bolster the real economy.

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  So joining us now on the line is Dr. Yaoshujie Chang Kung,

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