Daioyu Dispute

Beijing has decided to adopt 'restrained yet adequate' steps to counter Tokyo's claim to the Diaoyu Islands. Sources said the Communist Party's Leading Group on Foreign Affairs had recommended the authorities discourage Chinese fishing boats from getting close to the islets to avoid triggering an armed conflict with Japan. The group, the nation's highest authority on foreign policy, insisted only diplomatic means be taken against the Japanese.

It also ruled out any co-operation with Taipei to ensure the disputed archipelago remains in Chinese hands. A close watch would have to be kept on anti-Japanese activities by Chinese students and other grassroots organisations, they decided.