China, Japan Ties Turn Prickly Over Gas Field

by Paul Denlinger

Posted Oct. 26, 2004

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China and Japan's relations have taken a turn for the worse over China's intention to explore in the Chunxiao field in the East China Sea between China and Okinawa. The gas field lies in disputed territory north northeast of Taiwan.

The field lies 4 kilometers west of the median line between the two countries, which Tokyo argues should be the demarcation line between the two countries. The Chinese position is that the demarcation line should be from the continental shelf which extends from the Chinese coast, which moves the line considerably closer to Japan.

The Chinese have proposed that the two countries jointly exploit the field, a position which Tokyo has rejected. Instead, the Japanese Foreign Ministry, through their spokesman, demanded that the Japanese be allowed to see the Chinese exploration data. This followed the accusation from Shoichi Nakagawa, the Japanese trade minister, that China was setting up operations in Japanese waters.

Chinese demand for energy has become a main point of focus for China's diplomats, and even President Hu Jintao has become involved in the quest for secure foreign energy sources. Chinese domestic oil production is falling just as domestic demand is picking up. Chinese demand for oil and energy has hit energy prices hard, forcing it to new heights as demand increases. Demand has been so high that there have been electricity blackouts and brownouts throughtout east China, where most of China's manufacturing capacity is located.

Japan's demand for energy has grown at a much slower pace because its economy is mature. The Japanese economy has recently improved, and many Japanese companies feel that demand from China has been a major factor for Japan's improved performance. For this reason, Japanese companies want to avoid any dispute with China.Unfortunately, Japanese prime minister Koizumi depends on a nationalistic faction in the Japanese government to retain a majority. This minority, of which trade minister Nakagawa is a member, sees China more as a threat to Japan.

Chinese and Japanese ties have been historically touchy because of the Japanese invasion of China in WWII, which took the lives of some 20 million Chinese. Many younger Chinese feel that the Japanese have not expressed enough remorse for the invasion, and small disagreements, even over a recent soccer match, can quickly flare up into disputes which lead to calls to boycott Japanese products.

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