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.

The countries in East Asia continue to have problems in maritime boundary delimitation. The collision on September 7, 2010 between a Chinese fishing vessel (Minjinyu) and a Japanese patrol boat in the waters near Diaoyu/Senkaku Islands is interesting to observe as a step in dispute settlement process. The differences between the PRC and Japan on maritime boundary delimitation for the East China Sea and the legal status of Diaoyu/Senkaku Islands are demonstrated by this incident. To see things in their context, it is necessary to observe the practices of East Asian countries in handling their maritime boundary delimitations, especially those involving islands with disputed legal status. The rules of international law relating to the pacific settlement of dispute and maritime delimitation dispute resolution, which involve a preliminary sovereignty dispute over islands, are also relevant as a much broader background. The author will examine why certain maritime delimitation cases are particularly hard to handle. The lessons drawn from this paper is inspiring for Taiwan, a long-time marginalized player in East Asian regional affairs. The author will examine the difficulties and opportunities for Taiwan in maritime boundary delimitation and offer a suggestion on how to accomplish such task with neighboring countries.