From the CFR: Japan-China Relations Sour Over Disputed Islands

Top of the Agenda: Japan-China Relations Sour Over Disputed Islands

Massive and at times violent anti-Japan protests (Reuters)

across China over the weekend--the worst in decades, according to analysts--have prompted some Japanese firms to temporarily shutter factories in the world's second-largest economy and may threaten bilateral trade between the two nations. The demonstrations mainly focused on Japanese diplomatic missions but also included businesses in at least five cities. The uproar began after Tokyo agreed to purchase a chain of long-disputed islands last week in the East China Sea (BBC), known as Diaoyu in China and Senkaku in Japan, from a private Japanese owner. The uninhabited but strategically important islands are controlled by Japan, but also claimed by China and Taiwan. Beijing characterized the move as "illegal," but vowed to protect Japanese firms and expatriates. The United States said it will honor its security commitments to Japan, but would not take sides in the unfolding dispute.

Analysis

"Behind the farce of 'buying' the Diaoyu Islands, Japan has a much bigger plan. Since the United States announced its strategy of returning to Asia, Japan has been acting as 'a pawn of the U.S.' to encircle China. By getting involved in the South China Sea

dispute, playing up the 'China maritime threat' and frequently holding large-scale joint military exercises with US forces, Japan, together with other U.S. allies, is trying to contain China's rise, writes Chu Zhaogen in China Daily.

"U.S. allies and friends around the South China Sea look to the United States to maintain free trade, safe and secure sea lines of communication, and overall peace and stability in the region. Claimants and nonclaimants to land features and maritime waters in the South China Sea view the U.S. military presence

as necessary to allow decision-making free of intimidation. If nations in the South China Sea lose confidence in the United States to serve as the principal regional security guarantor, they could embark on costly and potentially destabilizing arms buildups to compensate or, alternatively, become more accommodating to the demands of a powerful China," writes Bonnie S. Glaser in this CFR Contingency Planning Memo.

"So far, though, it is reasonable to expect that cool heads will prevail, if only for the fact that trade between Asia's two largest economies

would suffer tremendously should war erupt between them. The assumption, therefore, is that the situation remains manageable and that 'rational' leaders will make the right decision, which is to de-escalate, writes J. Michael Cole for the Diplomat.
US Alarm Over Asia Territory Rows - BBC
Angst About Japan Island Dispute Builds in China - VOA
China Aims at Japan's Economy in Island Protests - AP
China Pushes Japan With Sea Claims, Trade Threats - Reuters
Japan FM: US Believes Security Treaty Covers Disputed Isles - Reuters
Anti-Japan Protests Spread to Hong Kong - VOA

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• China Voice: Japan's move violates common ground for bilateral ties - Xinhua
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• Chinese island dispute with Japan escalates with protests
• Japan to buy disputed islands, angering China - Houston Chronicle