China and Japan Dispute Islands in the East China Sea

China has delayed discussions with Japan over tapping petroleum resources in disputed waters out of pique over the Japanese incarceration of a Chinese fisherman whose vessel collided with two Japanese ships. The incident is part of a longtime dispute between Tokyo and Beijing over the ownership of the nearby Senkaku/Diaoyutai islands. Domestic considerations have prompted Japan and China to whip up nationalist sentiments over the current incident. Even though neither country wants matters to get out of hand, misunderstandings could exacerbate the dispute.