November 2010

Japan Center for International Exchange

The Senkaku Islands andMending Japan-China Relations
Hitoshi Tanaka, Senior Fellow, JCIE

Despite increasing economic interdependence between Japan and China, there are still political disagreements between our two nations that have thepotential to raise tensions and escalate conflicts. The
recent incident involving the Senkaku Islands is one
such issue, and it requires careful management so that
we can prevent escalation of the conflict and build cooperative relations.

Japan’s Historical Low-Key Approach
In 1978, Deng Xiaoping visited Japan for the ratification of the Treaty of Peace and Friendship between
Japan and the People’s Republic of China. During thisvisit, Deng made his now famous statement that theSenkaku Islands issue would be shelved for future
generations to address.
Given Japan’s effective control of the islands, Liberal
Democratic Party governments took the view that
there is no merit in disputing the issue with China.
To this end, they took a number of measures to handle this volatile issue in a low-key manner, so as notto instigate unnecessary protests from China. For instance, in 2002 they implemented measures to prevent
private Japanese citizens from visiting the islands—inparticular right-wing activists intent on making symbolic demonstrations of sovereignty—by entering intoa long-term lease for the three islands that are owned bya private landowner, thereby exerting government control over all of the islands. Further, and more crucially,
when the Japanese Coast Guard intercepted Chinese
citizens attempting to make a forced landing, they werepromptly expelled, rather than being placed before theJapanese legal process.

Rising Tensions
The most recent incident surrounding the SenkakuIslands has resulted in more confrontational relations
between Japan and China over the issue. An altercation in September between a Chinese fishing boat andthe Japanese Coast Guard triggered tensions, putting
a diplomatic standoff in motion. After the fishing boat
rammed into a Coast Guard vessel, causing substantial
damage, the Coast Guard arrested the captain of thefishing boat, not for illegally fishing in Japanese waters
but for obstructing the exercise of law enforcement.
Still, the decision to arrest the captain and send the caseto the prosecutor’s office, putting him into the Japanese
legal process, did appear in the eyes of the Chineseauthorities to be a departure from the past low-key
practice on the part of Japan.

grand strategy that recognizes the reality that East Asia
is a region in transition. Japan should have expected astrong reaction from China and calculated the impact
before taking any action.

China’s Tough Responses
In the wake of this perception that Japan had departed
from its previous low-key approach, and in response tostrong nationalist protests against the arrest at home,
the Chinese government took a range of tough, coercive measures against Japan. From the outset, China demanded the “immediate and unconditional” release of
the captain. Further, government-to-government consultations on matters such as a joint development project for gas in the East China Sea, and all government
exchanges above the ministerial level, were suspended;large-scale tours from China to Japan and entries into
China by Japanese residents planning to attend public
functions were cancelled; Chinese rare earth exports
to Japan were suspended; and four Japanese Fujita
Corporation employees based in China were arrested
on ambiguous charges of photographing military facilities. These responses have strengthened perceptions ofa hard-line China willing to take extraordinarily toughmeasures in response to regional disputes.

China’s Growing Assertiveness
The Senkaku incident is just one indication of abroader trend of China’s growing confidence in East
Asia, born out of the relative decline of US power andChina’s awakening great-power consciousness. Also indicative of this trend are the expansion of the People’s
Liberation Army’s (PLA) naval capabilities, China’s increased maritime activities to explore potential energy
resources, and China’s declaration of the South China
Sea as a “core interest.” Such actions have evoked concerns from other nations—particularly the UnitedStates with its commitment to open sea lanes—including from other regional actors with territorial disputes
with China such as the Philippines and Vietnam.
Notably, tensions over control of the South China
Sea were evident at the ASEAN Regional Forum(ARF) meeting held in Hanoi in July, where China
felt blindsided by comments made by the UnitedStates and the ASEAN countries. US Secretary ofState Hillary Clinton stated, “The United States hasa national interest in freedom of navigation, open
access to Asia’s maritime commons, and respect forinternational law in the South China Sea.” Her comments were echoed throughout the meeting by her
ASEAN counterparts, despite reported Chinese requests to handle the issue bilaterally and keep it off
the ARF agenda, as well as Chinese Foreign Minister
Yang Jiechi’s noticeable frustration.
My own experience recently as a panelist at theSingapore Global Dialogue in September also demonstrated China’s growing confidence and heavy handedness, as well as international concern resulting fromsuch conduct. A PLA major general launched a heatedrebuke of my remarks regarding the Senkaku Islands.
His comments at this dialogue, and a general increasein public comments by him and other senior PLA figures, have been picked up by those in the international
media who are concerned about the PLA’s growing influence over China’s foreign policy.

Perceptions of Japan’s Weak Diplomacy
Approximately two weeks later, Japan released the captain, and the explanation of the release was left to theNaha District Public Prosecutor’s Office. In justifying
the decision to the media, the deputy public prosecutor explained that consideration was given to the arrest’s effect on “the future of Japan-China relations.”
Domestically, there has been a backlash. Complaining that the government has bowed to Chinese pressure and run away from its obligation to explain to thepublic how it is managing Japan’s diplomacy, protesters
took to the streets.
More broadly, the Kan administration’s handlingof the issue is indicative of a lack of strategic thinking
on how to deal with the Senkaku issue specifically, adearth of crisis management mechanisms to deal withsuch serious incidents as they unfold, and a lack of vision regarding the formulation of an overarching foreign policy strategy more generally. The government
must make a more realistic assessment of the international environment and formulate a foreign policy
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2November 2010

presenting economic opportunity; it also has thepotential to destabilize the region. All regional actors thus need to be alert to and recognize East Asia’sshifting power configuration and try to bring China
into the fold as a constructive stakeholder in the international community.
A strategic realignment is needed to promotestrengthened relations among other regional actors,
such as Australia, India, Indonesia, Japan, South
Korea, the United States, and Vietnam, and to guard
against future unpredictability or any potential regional destabilization. Part of this strategic realignment needs to include deep strategic talks between
Japan and the United States. A new future-oriented
path forward for the US-Japan alliance must becharted, recognizing the shifting balance of power in
East Asia. The agreement made between US PresidentBarack Obama and Japanese Prime Minister Kan
during the Yokohama APEC Summit—to unveil anew vision for the alliance next spring—is a positive
step forward on this front. Another element of regional strategic realignment should be the establishment of a trilateral confidence-building mechanism
among the United States, Japan, and China. Such amechanism should include cooperation on militarymaneuvers, port visits, disaster relief, and regular defense program briefings while at the same time helping to ameliorate Chinese concerns regarding theUS-Japan alliance.

Mending Japan-China Relations
It would be wise for both countries to stop their debates on the Senkaku Islands. Japan has no intentionof shifting its policy and acknowledging that there isa territorial dispute, and it will continue to exert effective control over the islands. Therefore, there is no exit
point, and further debate will only serve to raise tensions and escalate the conflict.
What is important at this juncture is not to lay
blame or criticize but to actively move forward to diffuse confrontational stances and mend relations. The
two governments must lead the bilateral relationshipin a cooperative and constructive manner; antagonistic nationalism cannot be allowed to poison inter­actions. As a starting point, while the East Asia Summit
at the end of October was an opportunity lost, theNovember 2010 meeting between Prime Minister Kanand Chinese President Hu Jintao at APEC was a positive step forward.
Beyond this, the governments of Japan and Chinamust demonstrate why their bilateral relationship is
important and cement a mutually beneficial strategic partnership that delineates concrete measures
to be taken. Such measures should include the immediate resumption of all exchanges, including theexchange of ministers, joint public functions, andtourism; and negotiations for joint development ofgas fields should be restarted. Further, confidencebuilding measures (CBMs) should be reinvigorated
and expanded. This should include the resumptionof military exchanges between the PLA and the Japan
Self-Defense Forces and expansion of dialogue tohigher levels.

Revitalizing Japan’s Regional Economic
Diplomacy
Another tool for promoting regional stability and harmonious interdependence with China is the advancement of inclusive mechanisms on economic issues.
In this light, one positive outcome from the APEC
Summit was Japan’s decision to start consultations
with relevant nations on the Trans-Pacific Strategic
Economic Partnership (TPP). Previously, Japan aimed
to achieve East Asian economic integration by negotiating bilateral Free Trade Agreements (FTAs) withASEAN countries and by promoting former Prime
Minister Yukio Hatoyama’s East Asia Community idea.
The decision to consider joining the TPP is seen as amove by Japan toward a broader regional sense of Asia

Strengthening Regional Stability throughMultilateral Cooperation
At the same time, the rise of China requires a morecomprehensive approach than just implementing bilateral measures. As countries in East Asia seek tofoster a stable, peaceful, and prosperous region, interdependence with China is inevitable. China is already the top trading partner for Japan, South Korea,
and ASEAN as a whole, and this interdependence
will only intensify in the future. China’s growing
power means that it is not just an expanding market
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3

November 2010

Pacific, but this does not need to be at the expense ofEast Asia.
To participate in the TPP, Japan will need topush forward on liberalizing agricultural markets.
Agricultural protectionism has been a major hindrance to Japan’s ability to conclude FTAs, as demonstrated by bilateral negotiations with the UnitedStates and Australia and trilateral negotiations withChina and South Korea. Japanese participation in theTPP would represent a major step forward in eradicating Japanese agricultural protectionism, opening
the door for Japanese leadership on multilateral free
trade in East Asia. As Japan begins negotiating entry
into the TPP and pushes forward on agricultural liberalization, it should not abandon economic integration in East Asia. Simultaneously chasing economic
integration on these two fronts would be a wise strategy for Japan, where ultimately the two movements

can be linked together down the road to form a Free
Trade Area of the Asia Pacific.
◆ ◆ ◆Given Japan’s effective control of the Senkaku Islands,
the Kan administration should deal with China in amanner that is less likely to exacerbate tensions andescalate conflict. Japan and China must act quickly todiffuse the confrontational stances and mend bilateralrelations, resuming and expanding mutual exchanges,
negotiations, and CBMs. All countries in the region
have a role to play in handling the rise of China in apeaceful manner by bringing it into the fold as a constructive stakeholder in the international community.

Hitoshi Tanaka is a senior fellow at JCIE. He ­previously
served as Japan’s deputy minister for foreign affairs.

East Asia Insights
East Asia Insights is an occasional newsletter focusing on East Asia community building
from the Japanese perspective.
Published by: Tadashi Yamamoto, President, JCIE
Please direct any comments or questions to eainsights@jcie.or.jp.
Japan Center for International Exchange
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EAST ASIA INSIGHTS

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November 2010