Islands dispute could hurt trade

Japan's purchase of the disputed East China Sea islands could impact the $165 billion China-Japan bilateral trade, a senior Chinese trade official said. China's Vice Minister of Commerce Jiang Zengwei told a news conference in Beijing the island purchase will "inevitably have a negative impact on China-Japan economic and trade ties," China Daily reported. Tensions between the two countries have risen over their claims on the islands, called Senkaku in Japan and Diaoyu in China, since last month when activists from both countries landed on one of the islands to assert their country's sovereignty. The uninhabited islands have been under Japanese control since 1895 but have assumed importance since they are believed to be rich in natural resources. Relations between the two countries have worsened since Japan this week announced the purchase of three of the five islands from private owners for $26 million, bringing them under state control.