Tensions in East China Sea erupted into bilateral crisis between China and Japan over Diaoyu/Senkaku islands fol- lowing Japanese govt purchase of islands, which China also claims sovereignty over. Beijing retaliated by publishing territorial sea baselines encircling islands, deploying patrol vessels and fishing boats to disputed waters, staging large-scale military exercises, threatening economic punishment. Mass anti-Japan protests erupted in dozens of Chinese cities, some turning violent. Tourist agencies across China cancelled trips to Japan; high-level event celebrating 40 years of Japan-China diplomatic ties cancelled. Deputy FMs met in Beijing to discuss tensions, but no sign of end to problems. Dozens of fishing boats from Taiwan, which also claims islands, sailed into disputed waters under protection of Taiwanese patrol vessels; Japan Coast Guard vessels repelled them with water cannons.