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China To Japan: Hand Over The Senkakus Or Your Economy Gets It

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Chinese Foreign Minister Yang Jiechi said Saturday that "Japan needs to face up to reality, and take real steps to correct its mistakes... so as to prevent a further escalation," with regard the demand that Japan reverse its nationalization of the small islet chain of the Senkakus. In some of the strongest rhetoric yet, The Japan Times reports that the Chinese minister said Japan's 'single-handed' actions so far have "caused great damage to China-Japan relations and undermined stability in the region," and urged Tokyo to "make concrete efforts" to prevent fraught bilateral ties from spiraling out of control. As the reigns of control in China continue to be handed over (with Yang expected to become state Councillor for foreign affairs), we suspect the situation is far from resolved - especially with Shinzo Abe fighting a war on another front (that China is likely not pleased with either).

CNY-JPY exchange rate has devalued 28% in the last 6 months with the Yuan at its strongest against the Yen in 5 years...

 

Via The Japan Times,

China on Saturday demanded that Japan reverse its nationalization of the Senkakus and address the sovereignty dispute through negotiations, urging Tokyo to “make concrete efforts” to prevent fraught bilateral ties from spiralling out of control.

 

Chinese Foreign Minister Yang Jiechi said the sharp deterioration in Sino-Japanese relations was “single-handedly” caused by Japan’s purchase last September of three of the main Senkaku islets, and accused Tokyo of “illegally” seizing and occupying what he termed Chinese territory. The islet group in the East China Sea is administered by Japan but has been claimed by China since the 1970s.

 

“The Chinese side believes that Japan needs to face up to reality, take real steps to correct its mistakes and work with us to handle and resolve relevant issues through dialogue and consultations, so as to prevent a further escalation of the situation and stop it getting out of control,” Yang said on the sidelines of the National People’s Congress in Beijing.

 

Speaking at a news conference, Yang denounced Japan’s Sept. 11 purchase of the Senkaku islets of Uotsuri, Kitakojima and Minamikojima from a Saitama businessman, which effectively nationalized the entire chain, saying the move has “caused great damage to China-Japan relations and undermined stability in the region.”

 

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While censuring Japan for its acquisition of the islets, Yang said that developing “long-term, sound and steady (bilateral) relations” serves “the fundamental interests” of both countries and their people. “The Chinese side is ready to continue to develop a strategic relationship of mutual benefit with Japan,” he said.

 

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