Controlled by Japan. Called Senkaku by Japan, Diaoyu inChinese.
The History: China's claim to the Senkakus is based in part onrecords dating to the early 15th century. Beijing claims the areawas for centuries used by Chinese fishermen and for otherpurposes before it was taken by the Japanese during the Sino-Japanese War of 1894-95. Japan dismisses China's position, saying it had never claimed itssovereignty before the 1970s. The U.S. took over administration of the islands after World War II, but returned them to Japan along with Okinawa in 1972, a decision China has since contested. Taiwan also claims the islands. The dispute has grown with China's rapid naval expansion in theSouth and East China Seas, culminating in a standoff in 2010 that chilled bilateral ties for months. The latest flare-up was started by combative Tokyo Gov. Shintaro Ishihara's move to purchase theislands from a private Japanese owner., which pushed the central government into making its ownoffer to buy them.
The Stakes: China's push for the Senkakus in the East China Sea contrasts with other territorialdisputes it faces with Vietnam, the Philippines and others in the South China Sea. Oil-and-gasdeposits in the East China Sea are believed to be much smaller than the potentially massivedeepwater reserves in the disputed South China Sea.
The Senkakus do hold an important strategic position as a unique area where U.S. securityobligations to Japan and Taiwan potentially overlap. The East China Sea and Yellow Sea have longserved as an important buffer between China's advancing military capabilities and U.S. allies likeJapan and South Korea.
Control over the Senkakus would be important as the military looks to expand China's securitysphere. The East China Sea and the disputed areas near the Senkakus provide important shippingaccess to some of China's key ports, and Chinese leaders have long worried about direct U.S. influence there as well as proxy U.S. influence through the Japanese.
Chinese military strategy in part focuses on denying access to potential naval adversaries. GreaterChinese military control over the East China Sea, for example, would complicate U.S. efforts tointervene in the event of conflict with Taiwan.
2)LIANCOURT ROCKS
Controlled by South Korea. Called Dokdo by South Korea, Takeshima by Japan.
The History: The dispute with South Korea over the Liancourt Rocks, a set of islets halfwaybetween the two countries, can be traced back several centuries.
The islets have appeared on maps in both countries back to the 1600s. Korea says that textsdated as far back as the 6th century mention them. Japan questions the accuracy of Korea'sassertions.
Japan assumed control of them in 1905, shortly before its 1910 colonization of the Koreanpeninsula. Japan's assertion today rests in part on the fact that the U.S. did not include the islets ina list of territory Japan was forced to give up after World War II. South Korea has disputed thatsince early 1950s and controlled the islet with a small detachment of police since 1954. The latestspat came after South Korean president Lee Myung-bak visited the islets in early August. Japan hassince started a process to request conciliation at the International Court of Justice.
The Stakes: The islets are surrounded by fertile fishing waters. In recent years, speculation arose ofenergy resources under nearby waters, but that hasn't been proven.
South Korea's state-run natural gas company says a 2007 survey found natural gas hydrate inwaters near Ulleung Island, about 75 kilometers (40 miles) from the islets. Natural gas hydrate is acrystal compound that, when depressurized, converts to natural gas and water. Energycompanies are still working on efficient ways to recover it.
In 2008, the South Korean national oil company, working with Woodside Energy Ltd. of Australia, identified geologic structures in the Ulleung area with significant volumes of gas or oil. But their firstexploratory well came up dry and was closed earlier this year.
Japanese experts question the existence of significant natural resources reserves in the area.
