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China and Japan, in Sign of a Thaw, Agree to Disagree on a Disputed Island Group

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Negotiations between Japan and China before the APEC summit in Beijing, Nov. 2014, lead to an agreement that does not explicitly state Japan's sovereignty over the Senkaku islands, but acknowledges the current position in which the islands have remained in Japanese control since 1880. It lets both sides agree to disagree so that trade and diplomatic ties can be improved. China's economy has taken a hit from a 50% decline in Japanese foreign investment in 2014, just as the economy is slowing for other reasons. Both leaders can show the international community they have moderated their positions. Prime minister Abe also can show his foreign and domestic policies are working as his high poll ratings have declined in recent months.

Efforts to improve China- Japan relations at the APEC summit meeting in Nov. 2014

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China and Japan agree to set aside differences on the Senkaku island dispute to improve economic ties.

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