The latest round of tension between Japan and China reveals the underlying instability in East Asia. The Chinese are in high dudgeon over Japan's arrest of a Chinese fishing captain, whom Japanese officials claim rammed Japanese vessels in disputed waters in the East China Sea. They have apparently shut off exports of rare earth materials (though China denies it) to Japan and threatened greater sanctions unless Japan complies with its demands to release the captain.
The incident reveals that Beijing is willing to use its increased economic strength as a tool of coercion, no matter the consequences, for its own standing in international markets. But that is not all it reveals. Indeed, this is one in a series of arguments and incidents between China and Japan over the last decade related to sovereignty, territory, rights to natural resources, and China's expanding maritime capabilities in and around Japan.
The key factor in Asia's underlying instability, then, may not be the perception of China's rise relative to the United States' decline. Rather it may be China's rise relative to Japan's decline. The Chinese economy has now overtaken Japan's. China spends more on defense than does Japan. And within Japan as well as the rest of the region, there is a perception that Japan cannot shake its stagnation.
More at: http://shadow.foreignpolicy.com/posts/2010/09/24/washington_take_note_the_era_of_great_power_politics_is_far_from_over_in_asia