[h=3]By JULIAN E. BARNES in Tokyo and BRIAN SPEGELE in Beijing[/h]U.S. Defense Secretary Leon Panetta called for calm amid an escalating dispute between China and Japan over a group of uninhabited islands on Monday, even as Chinese officials moved to contain anti-Japanese protests in dozens of Chinese cities following weekend violence.
Associated PressWorkers cover signboards of several Japanese restaurants with blue sheets ahead of major protests expected on Tuesday, near the Japanese Consulate General in Shanghai.
But in a reminder of the potential stakes, a major Chinese Communist Party mouthpiece warned of economic retaliation if the situation deteriorates further —Beijing's strongest signal to date that it could consider moves that could impact $345 billion in annual trade between the two. It came as a number of Japanese companies in China closed their doors as a precaution against further violence.
Separately, Mr. Panetta confirmed that Japan will host a second land-based x-band radar to defend against ballistic missiles, a move that U.S. officials have said is aimed at potential threats from North Korea and not at China. The announcement could complicate Mr. Panetta's visit to China beginning Monday afternoon because China has raised questions about the U.S. investment in missile defenses, arguing they could be aimed at reducing the effectiveness of Beijing's nuclear deterrent.
Mr. Panetta, who left Tokyo on Monday and arrived in Beijing late in the day, sought to delicately handle questions over the Japan-controlled islands, which are in the East China Sea and known as the Senkaku in Japan and the Diaoyu in Chinese. He emphasized America's commitment to Japan's defense but its neutral stance in territorial disputes.
"Obviously we are concerned by the demonstrations, and we are concerned by the conflict that is taking place over the Senkaku islands," he said. "The message I have tried to convey is we have to urge calm and restraint on all sides."
Mr. Panetta urged China to participate in multilateral efforts to resolve territorial disputes. "There is a danger that [with] a provocation of one kind or another, we could have a blow up," Mr. Panetta said. "When you play the game of who is in charge, it starts to get risky."
Japanese Foreign Minister Koiichiro Gemba told Mr. Panetta that Tokyo was handling the situation calmly. "We will deal with the situation in a cool-headed manner, from a broad perspective," Mr. Gemba told Mr. Panetta in their meeting, according to a Japanese official.
Mr. Panetta is scheduled to meet Wednesday with Vice President Xi Jinping, the man expected to become the next president of China but who until Saturday had been out of public view for a few weeks, sparking rumors about his health. The meeting is likely meant to be a sign from Beijing that China's leadership transition is on track. U.S. officials said Mr. Panetta was eager to continue his own dialogue with Mr. Xi, begun at a Pentagon meeting earlier this year.
Officials also said Monday Mr. Panetta would be extending his visit by an extra day and will tour a Chinese frigate and Type O39 Song-class diesel-electric submarine at the People Liberation Army's North Sea Fleet at the China port of Qingdao. He is scheduled to leave for New Zealand on Thursday.
Chinese security increased its presence around Japanese government offices and businesses on Monday. In Beijing, a tight security cordon in front of the Japanese Embassy there limited protesters to about 50 people, compared with hundreds who pelted the building with eggs and bottles on Saturday and Sunday. In other cities, where protests devolved into vandalism against Japanese cars and businesses, police posted images of the people involved online and asked the public for information on their identities.
Local government attempted to contain violent protests, and declared they would crack down on those breaking the law. In the southern province of Guangdong, where violent demonstrations crippled parts of Shenzhen and Guangzhou, provincial police authorities said most protests were peaceful. A statement released Monday said a small group of people "attempted to deliberately incite aggressive behavior."
"We will only maintain reasonable patriotic passion, and express protest demands according to the law, millions of people of one mind, turning anger into strength," the statement read.
The state-run Xinhua news agency said Monday 11 people in Guangzhou had been detained in connection with weekend violence.
Meanwhile in Xi'an, city police in a statement Sunday evening vowed they would "decisively punish" those who had taken part in violent protests.
Still, many Japanese businesses around China closed their doors as a precaution, including restaurants and bars near the Beijing embassy.
At a daily news briefing on Monday, Foreign Ministry spokesman Hong Lei said "China will protect foreign people and foreign companies," adding, "Chinese citizens express their views in an ordered, legal way."
But Mr. Hong added that the disturbances show the impact on the Chinese public of Japan's recent move to buy the islands. "The outcome of Japan's wrongdoing has emerged, and Japan has to take responsibilities itself," he said.
China also ratcheted up its rhetoric on the potential economic impact of the dispute. The People's Daily, the mouthpiece of the Chinese Communist Party, acknowledged that economic weapons were a "two-edged sword," but it added that on issues of territorial sovereignty "China must meet the challenge." "If Japan continues to provoke China, China must fight back," said the commentary.
The commentary also said that Japan's economy "would not be immune" to retaliatory actions by China, adding that Beijing could target Japan's manufacturing or financial sectors as well as other specific export products.
China and Japan are major trading partners, with $345 billion in goods moving between them last year. Any move against trade could threaten the economies of both nations as they try to rekindle growth. China's leaders already face pressure to bolster an economy growing at its slowest rate since the aftermath of the 2008 financial crisis.
Potentially complicating the situation, Chinese fishing boats are expected to soon arrive in the Senkaku island region with the onset of fishing season. State media on Monday said about 1,000 boats typically ply the waters. Mr. Hong, of the Foreign Ministry, said the number of boats in the region depends on the fishing season.
Separately, U.S. officials said Monday they want to locate the new land-based x-band radar, formally known as a AN/TPY2, in the southern part of Japan, but not on Okinawa, where the U.S. military presence is deeply controversial. A U.S. team landed in Japan in recent days to discuss where the facility will be located, according to a U.S. defense official.
"The purpose of this is to enhance our ability to defend Japan, it is also designed to help forward deployed U.S. forces and it will also be effective at protecting the U.S. homeland from the ballistic missile threat," Mr. Panetta said at a news conference with Japanese Defense Minister Satoshi Morimoto.
The new deployment, Mr. Panetta said, showed the U.S. commitment to Japan and to its new defense strategy that emphasizes the Asia-Pacific region. Mr. Morimoto said the cooperation on missile defense would "ensure the safety of Japan and the region."
In the past, some U.S. officials have noted that defense built up against North Korean missiles would also be positioned to track a Chinese ballistic missile. A land-based radar would also free the Navy to reposition its ship-based radar to other regional hot spots, the official said.
But defense officials said Monday that the new deployment wasn't aimed at China. Mr. Panetta said he will continue to make clear to the Chinese that the U.S. ballistic missile defenses are aimed at North Korea.
—Yajun Zhang in Beijing and George Nishiyama in Tokyo contributed to this article.
Associated PressWorkers cover signboards of several Japanese restaurants with blue sheets ahead of major protests expected on Tuesday, near the Japanese Consulate General in Shanghai.
But in a reminder of the potential stakes, a major Chinese Communist Party mouthpiece warned of economic retaliation if the situation deteriorates further —Beijing's strongest signal to date that it could consider moves that could impact $345 billion in annual trade between the two. It came as a number of Japanese companies in China closed their doors as a precaution against further violence.
Separately, Mr. Panetta confirmed that Japan will host a second land-based x-band radar to defend against ballistic missiles, a move that U.S. officials have said is aimed at potential threats from North Korea and not at China. The announcement could complicate Mr. Panetta's visit to China beginning Monday afternoon because China has raised questions about the U.S. investment in missile defenses, arguing they could be aimed at reducing the effectiveness of Beijing's nuclear deterrent.
Mr. Panetta, who left Tokyo on Monday and arrived in Beijing late in the day, sought to delicately handle questions over the Japan-controlled islands, which are in the East China Sea and known as the Senkaku in Japan and the Diaoyu in Chinese. He emphasized America's commitment to Japan's defense but its neutral stance in territorial disputes.
"Obviously we are concerned by the demonstrations, and we are concerned by the conflict that is taking place over the Senkaku islands," he said. "The message I have tried to convey is we have to urge calm and restraint on all sides."
Mr. Panetta urged China to participate in multilateral efforts to resolve territorial disputes. "There is a danger that [with] a provocation of one kind or another, we could have a blow up," Mr. Panetta said. "When you play the game of who is in charge, it starts to get risky."
Japanese Foreign Minister Koiichiro Gemba told Mr. Panetta that Tokyo was handling the situation calmly. "We will deal with the situation in a cool-headed manner, from a broad perspective," Mr. Gemba told Mr. Panetta in their meeting, according to a Japanese official.
Mr. Panetta is scheduled to meet Wednesday with Vice President Xi Jinping, the man expected to become the next president of China but who until Saturday had been out of public view for a few weeks, sparking rumors about his health. The meeting is likely meant to be a sign from Beijing that China's leadership transition is on track. U.S. officials said Mr. Panetta was eager to continue his own dialogue with Mr. Xi, begun at a Pentagon meeting earlier this year.
Officials also said Monday Mr. Panetta would be extending his visit by an extra day and will tour a Chinese frigate and Type O39 Song-class diesel-electric submarine at the People Liberation Army's North Sea Fleet at the China port of Qingdao. He is scheduled to leave for New Zealand on Thursday.
Chinese security increased its presence around Japanese government offices and businesses on Monday. In Beijing, a tight security cordon in front of the Japanese Embassy there limited protesters to about 50 people, compared with hundreds who pelted the building with eggs and bottles on Saturday and Sunday. In other cities, where protests devolved into vandalism against Japanese cars and businesses, police posted images of the people involved online and asked the public for information on their identities.
Local government attempted to contain violent protests, and declared they would crack down on those breaking the law. In the southern province of Guangdong, where violent demonstrations crippled parts of Shenzhen and Guangzhou, provincial police authorities said most protests were peaceful. A statement released Monday said a small group of people "attempted to deliberately incite aggressive behavior."
"We will only maintain reasonable patriotic passion, and express protest demands according to the law, millions of people of one mind, turning anger into strength," the statement read.
The state-run Xinhua news agency said Monday 11 people in Guangzhou had been detained in connection with weekend violence.
Meanwhile in Xi'an, city police in a statement Sunday evening vowed they would "decisively punish" those who had taken part in violent protests.
Still, many Japanese businesses around China closed their doors as a precaution, including restaurants and bars near the Beijing embassy.
At a daily news briefing on Monday, Foreign Ministry spokesman Hong Lei said "China will protect foreign people and foreign companies," adding, "Chinese citizens express their views in an ordered, legal way."
But Mr. Hong added that the disturbances show the impact on the Chinese public of Japan's recent move to buy the islands. "The outcome of Japan's wrongdoing has emerged, and Japan has to take responsibilities itself," he said.
China also ratcheted up its rhetoric on the potential economic impact of the dispute. The People's Daily, the mouthpiece of the Chinese Communist Party, acknowledged that economic weapons were a "two-edged sword," but it added that on issues of territorial sovereignty "China must meet the challenge." "If Japan continues to provoke China, China must fight back," said the commentary.
The commentary also said that Japan's economy "would not be immune" to retaliatory actions by China, adding that Beijing could target Japan's manufacturing or financial sectors as well as other specific export products.
China and Japan are major trading partners, with $345 billion in goods moving between them last year. Any move against trade could threaten the economies of both nations as they try to rekindle growth. China's leaders already face pressure to bolster an economy growing at its slowest rate since the aftermath of the 2008 financial crisis.
Potentially complicating the situation, Chinese fishing boats are expected to soon arrive in the Senkaku island region with the onset of fishing season. State media on Monday said about 1,000 boats typically ply the waters. Mr. Hong, of the Foreign Ministry, said the number of boats in the region depends on the fishing season.
Separately, U.S. officials said Monday they want to locate the new land-based x-band radar, formally known as a AN/TPY2, in the southern part of Japan, but not on Okinawa, where the U.S. military presence is deeply controversial. A U.S. team landed in Japan in recent days to discuss where the facility will be located, according to a U.S. defense official.
"The purpose of this is to enhance our ability to defend Japan, it is also designed to help forward deployed U.S. forces and it will also be effective at protecting the U.S. homeland from the ballistic missile threat," Mr. Panetta said at a news conference with Japanese Defense Minister Satoshi Morimoto.
The new deployment, Mr. Panetta said, showed the U.S. commitment to Japan and to its new defense strategy that emphasizes the Asia-Pacific region. Mr. Morimoto said the cooperation on missile defense would "ensure the safety of Japan and the region."
In the past, some U.S. officials have noted that defense built up against North Korean missiles would also be positioned to track a Chinese ballistic missile. A land-based radar would also free the Navy to reposition its ship-based radar to other regional hot spots, the official said.
But defense officials said Monday that the new deployment wasn't aimed at China. Mr. Panetta said he will continue to make clear to the Chinese that the U.S. ballistic missile defenses are aimed at North Korea.
—Yajun Zhang in Beijing and George Nishiyama in Tokyo contributed to this article.