U. N. Secretary Kafi Annan requests a meeting between Japanese Prime Minister Koizumi and Chinese President Hu

Chinese demonstrators in cities such as Shanghai and Beijing

History of Relationship Japan wins Sino-Japanese War Japan carries out a coup against the Chinese in Shenyang (Mukden) known as the "Mukden Incident" on September Japan invades mainland China from its foothold in Manchuria and in December takes Nanjing Japan surrenders and removes troops from China

History(cont’d) Tokyo and Beijing establish diplomatic relations. Japan says it understands and respects China's position on Taiwan, which it regards as a renegade province Prime Minister Nakasone visits Tokyo's Yasukuni Shrine sparking anti-Japanese protests in China Fifty years after World War II ended, Prime Minister Tomiichi Murayama makes Japan's most widely recognized apology for starting a conflict that killed up to 20 million people.

History(cont’d) Sino-Japanese ties sour after newly-elected Prime Minister Junichiro Koizumi visited the Yasukuni Shrine Beijing and Tokyo fail to close the book on their bitter past during Chinese President Jiang's November visit Japan expressed only "deep remorse", rather than the written war apology sought by China, and Tokyo stood firm against Beijing's demand for a clearer statement that Japan would not support Taiwan independence.

Reason for Current Protest Angry about new Japanese history books that ignore war crimes of World War II Opposition to Japan’s attempt to gain permanent seat on the U.N. Security Council The Taiwan Issue Visits by Japanese prime ministers to the Yasukuni shrine Japanese Court’s rejection of lawsuit filed by Chinese surivors of WWII attrocities East China Sea Disputes

Chinese Opposition China feels Japan is trying “to buy” a permanent seat on the U.N. Security Council Many Chinese feel that Japan’s history of invasions should exclude Japan from a Security Council

Taiwan Issue China is dissatisfied over recent “negative tendancies” in Japan’s policy concerning Taiwan, and is especially concerned with deepening the Japan-Taiwan ties in security Chinese are requesting a more concrete display against “Taiwan Independence” and for “One China”

East China Sea Dispute China and Japan have always had disputes on Islands and boundary demarcations in the East China Sea Last Wednesday, The Japanese government initiated procedures to grant Japanese firms the right to conduct test drilling for potential gas and oil fields to the east of the so called "demarcation line" in the East China Sea

Economic Ties Both Japanese and Chinese officials are concerned of the economic consequences of the recent slump in relations China is Japan's biggest trading partner Trade between China and Japan last year was worth about $167 billion Japan has invested in more than 20,000 projects in China with total actual investment of more than $32 billion

Japans’ Stance Japanese Officials have stated the country stands in favor of “One China” policy and is against any “One China, One Taiwan” or “Taiwan Independence” policy Believe that they have already apologized for war crimes and are now demanded an apology from China for damage done during the protests In Tokyo, Koizumi indicated Tokyo might take a less confrontational stance if he is to meet Hu in Indonesia