Watching the World - Japan, China dispute field

Jan. 24, 2005
As everyone knows, Japan and China are racing neck and neck to secure ever greater supplies of oil and natural gas to keep their economies from sputtering.

As everyone knows, Japan and China are racing neck and neck to secure ever greater supplies of oil and natural gas to keep their economies from sputtering.

But the race is getting a little ill-tempered out in the East China Sea, where both Asian giants claim territorial rights to Chunxiao gas field.

Chinese warships recently surrounded a Norwegian survey vessel hired by Japan to stop it from entering the area, and with gunboats from both sides now on patrol, there are concerns that things could worsen.

Differing views

The situation was bad enough last autumn, when the countries emerged with widely differing views of talks held Oct. 25 that aimed at resolving a maritime boundary dispute affecting their potential natural gas rights (OGJ, Nov. 8, 2004, p. 28).

"I don't know why these discussions were even held," said Japanese Trade and Industry Minister Shoichi Nakagawa. "I don't plan to get involved in further talks that end without resolution," he told reporters Oct. 26 in Tokyo.

Zhang Qiyue, a spokeswoman for the Chinese Ministry of Foreign Affairs, said, "We believe this consultation is positive, and both sides have demonstrated sincerity and constructive attitudes."

Zhang said consultations are the only way to resolve the dispute between the countries, adding that both sides would have further talks. But the only talks going on seem to be between two Japanese companies and their own government.

Japan Petroleum Exploration (Japex) and Teikoku Oil, two of Japan's leading exploration companies, are in negotiations with the government over plans to start drilling for oil and natural gas in the disputed area.

A Japanese government official justified the exploration talk by saying that Beijing's decision to withhold information about its gas exploration in Chunxiao field last autumn had put pressure on Tokyo.

"In order to obtain more detailed information on the state of the resources, we will study the possibility of conducting test drillings while watching the situation," said Nobuyori Kodaira, director general of Japan's Agency for Natural Resources and Energy.

At a meeting of the Liberal Democratic Party's special committee on maritime rights and interests last November, Takemi indicated his view that Japan "should go ahead with test drillings by making its own judgments."

Clash seen

However, as the Tokyo Sankei Shimbun newspaper said in a recent report, "It is certain that China will clash head-on with Japan, and discussions at the second round of talks are expected to be tense."

At the time, one Japanese official acknowledged that view and took it one step further by admitting that "unless this is managed properly, there is a danger that things will escalate."

To make sure that doesn't happen, the Japanese and Chinese need to draw a line—and one they agree on. They need to demarcate their maritime boundary as a way to keep competition for the gas of the East China Sea within bounds.