As tension between Japan and China escalates over the ownership of the Senkaku Islands following the Japanese government's decision to purchase three of the five islets in the island group, there is the possibility that China will step up its confrontational attitude toward Japan.

This could cause difficulty on both political and economic fronts. Japan needs to carefully monitor Beijing's moves, ascertain the meaning behind those moves, and quickly take necessary steps to change the situation for the better.

It is important for Japan to take concrete action to resume constructive dialogue with China and thus it needs to mobilize all available means to that end. Neither repeating hawkish rhetoric toward its Asian neighbor nor taking a do-nothing attitude with unwarranted optimism will help end this difficult situation.