Since Japan "purchased" China's Diaoyu Islands in September, the Chinese government has taken a series of countermeasures in the economic, legal, diplomatic and military fields, which have helped it to wrest the initiative to resolve the islands dispute.
First, despite China not imposing any economic sanctions, the Japanese economy has been badly hit. The spontaneous anti-Japanese demonstrations in China, the cancellation of visits by Chinese nationals to Japan, and boycott of seminars held by business groups, the media and think tanks have dealt a blow to the Japanese economy. The Daily Yomiuri has reported: "Japan's exports to China have fallen for four consecutive months since June. Previously, declines in exports to China had been explained as part of a chain reaction triggered by falling Chinese exports. Trade statistics for September, however, showed Japanese exports to China plummeted by as much as 14.1 percent from the same month last year, with automobiles down as much as 44.5 percent."
In fact, an increasing number of Japanese media outlets have begun saying that improving ties with China is crucial to Japan's trade balance in the days ahead.
Second, China has completed the legal formalities to safeguard its territorial sovereignty and maritime interests. The announcement of the baselines of the territorial waters of the Diaoyu Islands provides the legal basis for China's jurisdiction over the islands and the surrounding waters in line with domestic and international laws.
In accordance with international law, China submitted a copy of the table of coordinates and charts of the Diaoyu Island and its affiliated islets to UN Secretary-General Ban Ki-moon. It has also completed the legal process regarding the announcement of the base points and baselines of the territorial waters of the Diaoyu Islands. These are important steps toward making it clear to the international community that China has indisputable sovereignty over the Diaoyu Islands.
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