Increasing Sino-Japanese tensions

-->

This is another point of conflict that is clearly not going away. It's almost a law of nature that with the tension that something has got to give. How and when remains to be seen.

China sends ships back to waters off disputed Japanese-controlled islands

Chinese government ships were back in waters around Japanese-controlled islands on Tuesday, the coastguard said, a week after they last left and days after heated exchanges at the UN General Assembly

The Telegraph,

2 October, 2012

The four maritime surveillance ships entered the waters shortly after 12.30pm (3.30am GMT), Japan's coastguard said in a statement, adding that it was telling the ships to leave the area.

"Patrol ships from our agency have been telling them to sail outside of our territorial waters. There has not been any response" from the Chinese ships, the agency said.

Two other Chinese official vessels were sailing near the island chain, but not in what Japan claims as its territorial waters, the coastguard also reported in a separate statement.

It was the first time in about a week that Chinese ships had entered the waters, and came after a lull in a fearsome diplomatic spat over the sovereignty of the islands known as Senkaku in Japan and Diaoyu in China.

Official Chinese vessels repeatedly sailed into the archipelago's waters until last Monday, defying warnings from Japan's well-equipped coastguard.

And last week Chinese and Japanese diplomats at the United Nations in New York traded insults, with China's Foreign Minister Yang Jiechi accusing Japan of theft.

The islands lie in rich fishing grounds and on key shipping lanes. The seabed in the area is also believed to harbour mineral reserves.

Japan's deputy UN ambassador Kazuo Kodama retorted that the islands were legally Japanese territory and said "an assertion that Japan took the islands from China cannot logically stand".

Historical grievances stemming from Japan's wartime expansionism also complicate the argument, as does a claim of ownership by Taiwan.

That claim was pressed last Tuesday when dozens of fishing boats were escorted into island waters by the Taiwanese coastguard, sparking water cannon exchanges with Japanese coastguard vessels.

The decades-old dispute came to the fore earlier this year when the China-baiting governor of Tokyo, Shintaro Ishihara, announced he wanted to buy the island chain from its private Japanese landowner.

Nationalists from both sides staged island landings before Prime Minister Yoshihiko Noda stepped in to outbid Ishihara, who had amassed well over a billion yen ($12.8 million) in public donations towards the cost.

The government completed its purchase of three of the five islands in the chain – it already owned one and leases the fifth – on September 11.

Observers said Noda's move to nationalise the islands had been an attempt to hose down an issue that looked set to become an international problem.

But Beijing reacted furiously and unleashed diplomatic vitriol on Tokyo, while tens of thousands of protesters poured onto streets in cities across China.

In demonstrations that commentators said had at least tacit approval from the authorities, Japanese businesses were targeted by violence and arson, with some forced to shutter temporarily.

The protests escalated, culminating a fortnight ago on a day coinciding with the 81st anniversary of the Mukden Incident, an episode marking the beginning of Japan's occupation of swathes of modern-day China.

Chinese state media announced late last week that the Communist Party congress – at which a generational leadership change is expected to take place – would begin on November 8.

China-watchers had said a behind-the-scenes tussle over who will occupy key positions has been going on for some time, complicating Beijing's behaviour over the island dispute.

Japan's political scene is also fragile and prey to nationalist sentiment. A weakened Noda is expected to call a general election over the coming months in which his fragmenting party looks set to fare badly.

China Banks Pull Out Of World Bank, IMF Events

Japan's territorial dispute with China could finally be spilling onto the global stage.

Fox Business,

2 October, 2012

Several big Chinese banks say they've canceled participation in the high-profile annual meeting of the World Bank and International Monetary Fund--to be held in Tokyo next week--as well as in the constellation of events taking place alongside. Some of the banks say they've also pulled out of another big financial-industry conference scheduled to take place in the western Japanese city of Osaka at the end of the month.

Most of the banks haven't given a reason for their last-minute no-shows. But the withdrawals come amid an escalating tit-for-tat between China and Japan, which recently nationalized a set of islands in the East China Sea that are also claimed by Beijing. China has shown its displeasure by canceling some diplomatic events and sending patrol boats into what Japan considers its territorial waters--with one group going through Tuesday. Some Japanese companies have reported falling demand for their goods in China and unusually strict inspections as well as processing delays at Chinese ports....

For article GO HERE

Chinese authorities begin seizing Japanese newspapers in the country

Japan Daily Press,

2 October, 2012

A representative of the Overseas Courier Service Co., a Japanese logistics distributor, has told Kyodo News that customs authorities in China have started seizing Japanese newspapers that have been delivered to the country by airplane. Affiliated with Japanese airline All Nippon Airways (ANA), the distributor says Chinese authorities haven’t given any reasons for the seizure or for how long such policy will continue. This is beginning to seem like a trend in response to Japan’s control of the disputed Senkaku/Diaoyu Islands, with customs already subjecting Japanese imports and exports to additional inspections, and Beijing implementing a ban on any Japan-related books.

Kyodo was told by the distributor that the Thursday evening and Friday morning editions of Japanese newspapers from last week were seized. They also commented that while the removal or blacking out of certain articles by Chinese authorities is nothing new, the confiscating of entire newspapers has never been done before.

Among the reports in the papers was the account of the meeting between Jia Qinglin, a senior official of the Communist Party of China, and a delegation of Japanese politicians and business leaders. Speaking in Beijing on Thursday, Jia told the group that Japan needed to recognize the disputed islands were part of China’s sovereignty. He added that if Japan doesn’t “correct its mistakes” over the occupation of the territory, and accept China’s claims of ownership, then the two nations’ ties would be further damaged.