Unequivocal Antagonism

The Chinese government has been taking position to distinguish economy from politics in the relationship with Japan. Now it seems to have turned the principle down.

The City of Shanghai, the second largest city in China, revealed on Sunday that it seized a large iron ore carrier of Mitsui O.S.K. Lines, which had 226 thousand metric tons of loading capacity. The reason was that Japan had not been responding to the request of compensation from Chinese company in 1936. This was well regarded as a new aggressive action on post-war compensation.

A Chinese ship company had a contract with Japanese sea transportation company of lending two ships, which were used by the Imperial Japanese Navy and sank in 1938 and 1944. The family of Chinese company in 1988 sued Mitsui O.S.K., the successor of Japanese ship company, demanding compensation of 2 billion Renminbi that was worthy of $330 million. After some argument in lower court, the Supreme Court of China rejected appeal of Mitsui in 2010.

Japan kept on saying that all appeal for compensation was cleared when China abandoned the right in Japan-China Joint Statement in 1972. In 1990s, China started interpreting the statement as not giving up private compensations. The case on Mitsui was recognized by Japanese business sectors as a sign of Chinese government to deal with post-war compensation issues against Japan’s benefit. With many issues waiting for that kind of sentence from the court, this case actually became a yellow light for business with China.

An economic analyst thought that the attitude of Chinese legislative branch was a diffusion of China’s boldness as the second largest economy overtaking Japan. Another saw a possibility of business shift from China to Southeast Asia. Many still see Chinese economy to be dependent on Japan.

However, political leaders in Japan need to see this change in political aspect. It is natural for the Japanese to see this case as political assertion of Xi Jinping administration. To take strong standpoint toward Japan is not only an appealing point to the Chinese people, but also a diplomatic card against the United States. Bringing new complexity in bilateral relationship with Japan, China tries to disseminate negative opinion inside U.S. public on rebalancing U.S. strategy to Asia-Pacific.

China seems to have thought this is the best time for doing it. U.S. President, Barack Obama, is coming Japan later this week. The sentence on Mitsui may work as an announcement of Chinese readiness on all-out antagonism against an important Asian ally of U.S.