What is the Diaoyu/Senkaku islands dispute about?

The archipelago comprises of eight islands in total. Geologically, that amounts to five islands and three rocks. They have been uninhabited ever since Koga Tatsuhiroa — a businessman trading in dried bonito — and his employees left the islands in 1940. These days, any sightings of ships or aircraft near the islands can quickly trigger political tension and scrutiny.

Currently, the islands are under Japan’s administrative control. Through the 1971 Okinawa Reversion Treaty, the US returned the Ryukyu Islands—which included the disputed islands—to Japan. However, the US made it clear that the transfer of the right of administration does not equate to the transfer of sovereignty. Hence, the sovereignty of the islands continues to be contested.

With less than seven square kilometres in total land mass, the islands have little value. Where the islands are valuable, is that the victorious claimant could, under international law, gain exclusive economic rights to nearly 20,000 square nautical miles to the surrounding seas and seabed.

Beneath the waters lie a potential treasure trove of natural gas, oil, and fishes. In fact, Japan accused China of only caring about the islands after an academic survey of the East China Sea done in 1968 found the presence of oil and gas reserves near the islands.

The dispute has largely manifested in the form of tit-for-tat tactics between China and Japan, mostly in the form of vessel patrols near the islands. Both parties have been cautious about escalating the dispute, since the US would be obliged to come to Japan’s aid due to the Treaty of Mutual Cooperation and Security.

However, the dispute goes beyond powerful entities fighting it out. It is very much about the people, who consider defending their countries’ claims as an act of patriotism.

Over the years, Japanese activists have sporadically landed on the islands to affirm Japan’s ownership of the islands. In China, there was an unprecedented show of unity with people from Hong Kong and Taiwan joining the Chinese in protesting against Japan’s decision to purchase three of the islands in 2012, and calling for the return of the islands to China.

This outward display of patriotism may have added a layer of complexity to the dispute, as the respective leaders were pressured to present a tougher front when dealing with the dispute. For example, Chinese premier Wen Jiabao turned down a meeting with Japan’s Finance Minister Naoto Kan in 2010, in response to Japan’s arrest of a Chinese fishing crew and captain.

Last year, Japan and China celebrated the 40th anniversary of the Treaty of Peace and Friendship. In his congratulatory message, Japan’s Prime Minister Shinzo Abe said he was “very pleased to have Japan-China relations return to a normal path”. Echoing his sentiment of goodwill, Chinese Premier Li Keqiang expressed a desire to “promote lasting, sound and stable relations.”

During the G20 summit this year, the issue of the Diaoyu/Senkaku islands was broached. In response to Shinzo Abe cautioning about China's military build-up in the East China Sea, China President Xi Jinping reaffirmed China's default position. However, the two leaders did agree to have "permanent and close communication as eternal neighbours".

While these developments show that both countries are open to dialogue, the island dispute will probably take a backseat in light of the ongoing trade dispute between China and the US. Moreover, the island disputes have historically been characterised by alternating periods of relative calm and aggressive posturing. Peace in the East China Sea for now does not guarantee calm waters in the future.