Japan and China, two of the world’s biggest economies, have been confronting each other disputing over a set of islands in the East China Sea. The Senkaku islands to Japan and known as Diaoyu islands in China became a major issue for both countries as to who truly owns the set of land distributed between the territories of two countries.
The United States might get involved in the conflict. Historically, China claims that it was owned by a dynasty in China for over millions of years while Japan claims its ownership based on recent historical fact that the United States, after Japan’s seizure by U.S. troops was lifted, gave back the islands to Japan. The United States plays a role in the situation as per treaty and Washington confirms that the treaty covers the Senkaku islands.
In China, anti-Japan protests erupted in recent months with Japanese manufacturing companies and brands being vandalized and boycotted respectively. Chinese reception of Japanese products slowly declined along with consumer interest, leaving Japan a weaker export market as China is one of their largest clients. In Japan, protests against the Chinese broke out in the streets.
Analysts state that the situation can go worse with both countries in bad relations. China’s economy is slowing down and will need new kinds of economic and growth policies that would need Japan’s economic partnership. Japan’s exports, with the EU in a deep debt crisis, will require the help of Chinese consumers to outdo their other Asian economic rivals.
If a war breaks out between both countries, the U.S. can get involved as it is by treaty bound to come to Japan’s aid during such a crisis.