China Japan Tensions Escalate Over Fishing Boat Captain

BEIJING Sept. 23, 2010— -- Tensions between China and Japan threatened to escalate today over Japan's detention of a Chinese fishing boat captain who was arrested near an island whose ownership is in dispute.

Chinese Premier Wen Jiabao issued a stern warning today, stating, "If Japan clings to its course, China will take further action....Tokyo bears all responsibility for the situation and it will bear all consequences."

Meanwhile, in Tokyo Japan's chief cabinet secretary, Yoshito Songoku, appealed for a calm dialogue. "We hope Japan and China will hold high-level talks as soon as possible to ease the diplomatic row," he told a press conference.

But there are now concerns that China is escalating the war of words, hitting Japan where it hurts hardest, its economy. According to a report in the New York Times today, China is is halting shipments of rare-earth minerals to Japan. These vital minerals are used by Japan in high-tech products like hybrid cars and wind turbines. While China has since denied any official trade embargo the mere whiff of a halt in exports is likely to raise fears in Japan that China is moving to target the country's already ailing economy.

Already, one Chinese company, announced it would a cancel a long-prepared trip of some 10,000 staff members to Japan in October in order "to stand on national dignity." The cancellation was expected to bring a loss of hundreds of thousands of dollars. Tourism between the two countries has been affected and millions of China's internet users have flooded the internet with angry comments on the issue, many calling for a boycott of Japanese goods.

Meanwhile, China has halted all high-level government contacts between the two countries and suspended talks on aviation and energy exploration. China said that it would be "inappropriate" for the countries' two premiers to meet with each other during the U.N. meetings in New York this week.

The brouhaha began on Sept. 7 when two Japanese coast guard patrol ships collided with a Chinese fishing boat off of the hotly disputed Diaoyu Islands in the East China Sea. The Japanese arrested all those on board and confiscated the boat. Last week they released the crew but a court ruled to extend the captain's detention by another 10 days, throwing the Chinese into a fury.