Following the release of Chinese trawler captain Zhan Qixiong, Beijing has continued to ratchet up pressure by demanding an apology and compensation from Tokyo over Zhan's 'unlawful' detention.
The Foreign Ministry made the demand twice on Saturday and Japanese Prime Minister Naoto Kan yesterday firmly rejected the call.
This has led to some murmurs that Beijing is being insatiable after forcing Tokyo to stand down in the worst diplomatic row between the two countries in at least five years.
At first glance, Beijing is indeed the outright winner, judging by the glee of the nationalist sentiment at home and strong reaction from the Japanese media, which accused Tokyo of bowing to pressure from Beijing. But if one probes deeper and looks at the wider implications, Washington is a much bigger winner. With Washington's increasing engagement, Sino-Japan relations are getting more complex, particularly over disputed territorial claims, and so are China's relations with its Southeast Asian neighbours.
After Zhan's arrest on September 7, Beijing initiated a series of harsh diplomatic protests, summoned Japan's ambassador six times, suspended ministerial-level contacts, postponed talks on developing disputed undersea gas fields and cancelled joint cultural events.
In New York last week, Premier Wen Jiabao threatened further action if the captain was not immediately released.