Security advisory panel to Japanese PM Shinzo Abe 15 May agreed constitution should be reinterpreted to allow “collective self-defence”. China-Japan-ROK Agreement of Promotion, Facilitation and Protection of Investment came into effect 17 May, despite ongoing tensions over disputed territories; Japanese, Chinese trade ministers 17 May met for first time in 2 years at APEC forum, agreed to strengthen economic cooperation. Japanese media 19 May suggested Japan planning to build 3 military outposts on disputed Senkaku/Diaoyu islands; Japanese Chief Cabinet Secretary Yoshihide Suga said specific locations not decided. Chinese fighter jets 24 May flew within 30 metres of Japanese surveillance aircraft in disputed airspace near Senkaku/ Diaoyu islands increasing diplomatic tension.

Hu Deping, son of late Chinese leader Hu Yao- bang and reportedly close confidant and adviser of President Xi, visited Japanese PM Abe’s office 8 April, also met with  other senior govt figures, discussed future of Japan-China relations. Abe believed to have told Hu that Tokyo ready to hold dialogue, make efforts to mend bilateral relations. Hu’s latest visit believed to reflect China’s desire to improve ties with Tokyo ahead of planned Asia-Pacific Economic Cooperation forum summit being hosted in Beijing in Nov. Shanghai court ordered seizure of Japanese ship over legal claims dating before WWII; Tokyo expressed concern decision could undermine diplomatic and business ties; Beijing said decision a matter of contract law, not related to wartime reparations; court released vessel after Japanese owner paid compensation. U.S. Sec Defence Hagel visited China early April; Chinese officials warned both in public and privately for U.S. not to take sides in China’s maritime disputes, implied U.S. has emboldened China’s rival claimants, namely Japan and Philippines, to “provoke China”.

Japan’s ruling coalition 25 March agreed to ease self- imposed arms export ban, would allow Tokyo to export weapons to nations along important sea lines; Beijing criticised what it called “major shift from Japan’s policy of pacifism”. China welcomed Japan’s move to hand over nuclear materials for potential use in bombs to U.S. as agreed during nuclear security summit 25 March. Japanese PM Abe 14 March promised to honour WWII apologies expressed in 1993 Kono and 1995 Murayama statements. Japan 23 March scrambled military jet in response to Chinese aircraft flying near disputed Diaoyu/Senkaku islands.

China angered by governor of Japanese state broadcaster’s speech 3 Feb in which he denied 1937 Nanjing massacre; Beijing called comments “barefaced challenge to international justice and human conscience”. U.S. Sec State Kerry 7 Feb reiterated commitment to defend ally Japan in case of escalation in East China Sea, affirmed non-recognition of China’s air defence identification zone after meeting Japanese FM in Washington; China stated U.S. should refrain from remarks that “harm regional stability and China-U.S. relationship”. Beijing 12 Feb expressed anger about Japanese move to seek compensation over 2010 ship collision in waters near Diaoyu/Senkaku islands. 3 Chinese coast guard vessels briefly entered disputed waters in East China Sea 23 Feb. U.S. Naval intelligence head mid-Feb claimed Chinese forces being trained to conduct “short, sharp war” against Japan; Pentagon later downplayed remarks. U.S.-Japan forces practiced island takeover during 4-week joint military drills. Chinese legislature 27 Feb designated 2 annual holidays to commemorate victory over Japan and Nanjing massacre. Japanese govt announced it will set up body to review 1993 Kono statement which apologised for its use of sex slaves during WWII.

Diplomatic dispute over Japanese PM Abe’s 26 Dec visit to Yasukuni shrine continued. Nearly 40 Chinese envoys worldwide took to local media to denounce Abe’s action as attempt to alter post-WWII world order; Japanese ambassadors criticised China as destabilising actor in region. Abe 22 Jan said “military expansion in Asia” must be restrained; compared China-Japan relations to Germany and UK before WWI, drawing rebuke from Chinese FM Wang who called Japan “troublemaker”, pointing to past aggression. During UNSC debate 29 Jan Chinese envoy said Abe’s Yasukuni visit “closed door to dialogue”. Japanese Self Defence Force held drill simulating recapturing island from enemy nation 12 Jan; Chinese vessels same day entered waters of disputed islands in East China Sea. China’s State Oceanic Administration confirmed increasing maritime forces with aircraft, patrol boats.

Japanese PM Abe visited Yasukuni Shrine 26 Dec drawing a swift rebuke from Beijing. Chinese FM Wang said Abe’s action erected a new and major political barrier to already severely strained Sino-Japanese relationship. U.S. VP Biden’s 2-7 Dec Asia trip dominated by talks over China’s new Air Defence Identification Zone (ADIZ); Biden reiterated that U.S. does not recognise zone, urged China and Japan to establish channels of communications, reaffirmed U.S. alliance with Japan, asked China’s President Xi to “show restraint”. S Korea 8 Dec announced it would expand its air defence zone (ADZ) for first time in 62 years, meaning China, Japan and ROK ADIZs overlap in East China Sea; China expressed “regret”. Referencing China’s ADIZ but avoiding naming it directly, Japan and ASEAN countries agreed to “enhance cooperation in ensuring freedom of movement in the skies” during mid-Dec summit in Tokyo. Japan 17 Dec adopted new National Security Strategy and increased military spending over next 5 years, citing as justification concerns over China; China strongly critical. Japan and S Korea conducted long-planned combined naval drill in area 11 Dec. Chinese FM Wang 16 Dec outlined China’s 2014 diplomatic priorities including “striving to settle territorial and maritime disputes with neighbouring countries” while safeguarding sovereignty.

China 23 Nov created “East China Sea Air Defence Identification Zone” containing disputed Diaoyu/Senkaku islands, announced defensive measures will be taken against aircraft not obeying Chinese rules. Japan described move as “escalation”; PM Abe said move “dangerous”, U.S. called it “destabilizing”, S Korea also protested. China responded angrily to criticism, lodging complaints with embassies. Japan, S Korea and U.S. all flew military aircraft through area in following days without incident; China 28 Nov sent military aircraft to patrol area. U.S. advised its civilian airlines to observe China’s air defence zone, Japan told its com- mercial flights to disregard China’s new rules. Japan held joint and combined military drills with U.S. early Nov with 34,000 troops, 6 vessels, 360 aircraft Abe’s security adviser 6 Nov said Japan should be able to apply its right to fight in collective self-defence to other allies as well as U.S.. Japan scrambled fighter jets after Chinese aircraft sighted near Diaoyu/Senkaku islands 16 Nov; 4 Chinese coast guard vessels sailed near disputed area same day. 180 Japanese businessmen visited Beijing 18-22 Nov to promote economic cooperation. Abe mid Nov visited Cambodia and Laos in bid to strengthen ties.

Beijing denied reports that China sent senior foreign ministry official to Japan for secret talks early Oct to repair frayed bilateral ties, though confirmed countries’ diplomats maintain communications; Japanese govt spokesman acknowledged countries maintained “dialogues and communications at various levels”. Following Sept meeting between Japanese PM Abe and Chinese President Xi at G20 summit, China declined second meeting at early Oct APEC summit in Bali. U.S. and Japan 3 Oct agreed to modernise defence alliance for first time in 16 years, citing growing concerns about DPRK’s nuclear program and other threats. Citing “increasingly insecure environment” PM Abe in speech to parliament 15 Oct proposed establishing security council within his office, and plans to reinterpret Article 9 of constitution to allow Japanese troops to fight when country’s allies are attacked; 26 Oct said Japan will stand up to China. Chinese analysts criticised Abe’s “aggressive” stance. Parliament 22 Oct approved plan allowing for interception of foreign drones in Japanese airspace. Chinese defence ministry 26 Oct said shooting down of Chinese drones would be seen as an act of war. China summoned Japanese ambassador in Beijing to express anger after over 100 Japanese MPs 17 Oct visited Yasukuni Shrine honouring WWII dead including war criminals; PM Abe refrained from visiting shrine, but made offering and expressed regret that he was unable to make trip; aide told media he is likely to visit before year-end.

Tensions between China and Japan over Diaoyu/ Senkaku islands played out in skies: Japan scrambled fighter jets as Chinese govt aircraft neared disputed island airspace 26 Aug, causing approaching plane to retreat; again scrambled jets 8-9 Sept in response to 2 Chinese bombers flying through gap in Okinawa island chain, and unidentified drone approaching Diaoyu/Senkaku airspace from NW. Japan arrested Chinese sailor after collision in Japanese waters between two cargo ships 27 Sept in which 5 crew members of Japanese-registered ship killed, 1 missing. Chinese President Xi and Japanese PM Abe held impromptu meeting 5 Sept at G20 summit in St. Petersburg, first time leaders have met since Diaoyu/Senkaku dispute began Sept 2012. China increased its maritime presence around islands in days around 11 Sept anniversary of Japan purchasing islands. In response to increased Chinese activity, Japan’s top govt spokesperson 10 Sept suggested Japan station civil servants on islands. China showcased new guided missile frigate in East China Sea 1 Sept.

Tensions in East China Sea remain high. Newly-consolidated China Coast Guard 2 Aug dispatched 4 vessels to waters around disputed Diaoyu/Senkaku islands for a record long stay prompting Tokyo to protest. Five fishing boats carrying over 20 Japanese activists sailed into disputed waters 18 Aug. Prospects for diplomatic thaw between China and Japan continue to appear dim. Japanese vice FM Saiki claimed presidential summit imminent after his late-July visit to Beijing; Chinese FM denied Saiki was received by any Chinese officials. China late-month dismissed possibility of leaders meeting at G20 summit early-Sept, accused Tokyo of “empty talk”. Japan 6 Aug launched largest warship since WWII, arousing suspicion in China, with its media saying destroyer is aircraft carrier in disguise. Japan says vessel remains in line with pacifist constitution. Anniversary of Japan’s WWII surrender 15 Aug saw PM Abe omitting commemoration/recognition of wartime damage inflicted on its Asian neighbours in his speech. Abe refrained from visiting controversial Yasukuni Shrine, but several members of his cabinet paid visits; Chinese govt summoned Japanese ambassador to protest. China’s PLA Navy launched 4-day exercise in Bohai and East China Seas.