Despite the escalation of tensions on the Korean peninsula and over the Senkaku Islands, there are signs that Japan and China realise that they have little to gain from mutual conflict. The two nations have new leaders and neither wants to lose face. One way out of the impasse could be the revival of trade talks between Japan, China and South Korea.

THE new political leaders in China and Japan are taking cautious but straight steps towards rapprochement.

They have been forced to focus on pressing economic and social issues in their own countries, and realised that sabre-rattling over the disputed Senkaku Islands in the East China ...

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Dr. Stefan Lippert
China has concluded its once-in-a-decade leadership transition and begun to send signals to Japan and the United States that it is seeking ways to rebuild the damaged relationship with Tokyo cautiously, on condition that it does not lose face
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