China and Japan have issued conflicting reports about a coast guard encounter early Tuesday near a disputed island chain in the East China Sea, against a backdrop of tensions between the neighbors.

Why It Matters

Known in Japan as the Senkakus and in China as the Diaoyus, the uninhabited islets are home to rich fishing grounds and are widely believed to contain significant natural gas and oil deposits. They have also been at the center of a territorial dispute since Tokyo nationalized them in 2012, with China stepping up patrols by its coast guard ships in response.

The reports come as Tokyo and Beijing continue to deteriorate over Japanese Prime Minister Sanae Takaichi's statement last month that a military blockade of Taiwan could necessitate military intervention under Japan's pa

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