The uninhabited Senkaku islands, which have been administered by the Okinawan local government, have been claimed by Japan, China and Taiwan. The vicinity of the disputed islands has long been identified as possessing potential oil and gas resources. The territorial disputes have been intensified after the Japanese government nationalized the islands in 2012. The situation has been regarded as the most serious for Sino-Japanese relations in the post-war period in terms of the risk of militarized conflict. The Chinese government used “core interests” to describe national sovereignty over the islands which it will make no compromise at any price, while the Japanese government hardened its stance by insisting that there is no territorial dispute to negotiate with China over the islands. The peaceful settlements on the disputed islands are complicated because it involves history, economy, security and nationalism. This paper argues that the best way to ease territorial disputes will be to create a common economic zone based on mutual understanding and economic interests through the wisdom of the islands of Okinawa and Taiwan based on a growth triangle (GT) approach. China has been claiming that the disputed islands are under Taiwan’s jurisdiction. Both Japanese and Chinese central governments should leave all powers to both Okinawa and Taiwan governments for peaceful, joint development of the disputed waters.

• Hiroshi Kakazu, Ph. D.(Vice President, Institute of Asian Modernization (Tokyo))