The East China Sea dispute is in the news again. Japan responded to China's provocative step of sending three patrol vessels into the waters surrounding the Japanese territories of the Senkaku Islands by recalling its ambassador to China for talks. This latest Chinese move, coming at the same time that China is seeking to assert sovereignty over the entire South China Sea, is disturbing.
Many China watchers fear the East China Sea dispute has a greater chance of erupting into a major international incident than the situation in the South China Sea, with the attendant diplomatic and/or economic fallout. Any further incidents may result in an increase in Country Risk for Japan. Is this China's intention, to destabilise its neighbors, and annex these frontier territories ?