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In December 2010, a Japanese city parliament passed a bill stating January the 14th as the day of Japanese exploitation of the Diaoyu Islands, a date back in 1895 when Japan occupied the islands illegally.
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Japanese Prime Minister, Naoto Kan, has outlined his major policies in a speech to both houses of parliament on Monday. As for China, he stressed the importance in developing Japan-China long term strategic bilateral relationships.
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In response, China lashed out at Japan's attempt and voiced strong opposition while reiterating China's sovereignty over the Diaoyu islands since ancient times.
Also in December, Japan and the US held the biggest ever joint military drill in waters close to Diaoyu Island.
However, the Japanese Prime Minister says the exercises have nothing to do with the island dispute.
Indeed,the rise of China has been one of the focuses of Japan's foreign policies, as Japan's New National Defense Program issued last December painted China a bigger threat than Japan's Cold War rival Russia.
It's also shifting its defense emphasis from the northern to southwestern islands.
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