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.