Japan, Territorial Dispute | featured news

HONG KONG (Reuters) - In a break from months of saber rattling, China under new President Xi Jinping appears to be moderating its approach to a potentially explosive territorial dispute with Japan and taking measures to prevent accidental conflict.

China reserves the right to take strong countermeasures if Japan "creates incidents" in the waters around a group of disputed uninhabited islands in the East China Sea, a Chinese vice foreign minister said on Friday.

Shintaro Ishihara, the firebrand governor of Tokyo whose obsession with a set of disputed islands prompted Japan’s latest spat with China, declared on Thursday that he was quitting local politics to start a national party, a move that could escalate the territorial dispute and shift allegiances in Japan’s soon-to-be-called elections.

Japanese Foreign Minister Koichiro Genba has defended the central government’s decision to buy the Senkaku Islands, stating in a BBC interview in London this week that if Tokyo Governor Shintaro Ishihara had made the purchase, as originally intended, things would be much worse by now. While Genba feels it was the best choice for Japan to control the territory disputed with China, he argued that if the hawkish, nationalist Tokyo Governor had gained control personally, he would have followed through on his publicized plans of landing and developing on the islands, actions that would have outraged China to no end.

A festering territorial dispute between China and Japan has derailed talks for a free trade zone involving the two countries and South Korea, an adviser to China's central bank said on Thursday.

Thousands of Chinese besieged the Japanese embassy in Beijing on Saturday, hurling rocks, eggs and bottles. Protests spread to other cities in a dispute over a group of remote islands.

Six Chinese maritime surveillance ships entered waters around a group of islands at the center of a heated territorial dispute between Tokyo and Beijing, ignoring warnings from the Japanese authorities.

U.S. Secretary of State Hillary Clinton said on Sunday she believed Japan and South Korea were ready to tone down a row over a disputed island chain that has set two close U.S. allies at odds amid heightened regional tensions with China.

China and its neighbors in Southeast Asia must move determinedly to draw up a code of conduct to help resolve disputes in the South China Sea, and should refrain from threats and coercion that have sent tension skyrocketing, US Secretary of State Hillary Clinton said on Monday.

Vast oil reserves, trillion-dollar trade routes, fervent nationalist sentiments, competing territorial claims and bitter histories – the waters off the east coast of China are a sea of money and a sea of trouble.