Well it looks like things are about to get a hell of a lot worse. Apparently 1000+ Chinese fishing boats planning to "invade" the islands, and nation side protests are approved for today.. If China suspends REE exports over one fishing boat imagine what they'd do if Japan impounds all of these.
Must say it's somewhat of a clever short term move though as they can play any Japanese defence of their territory as aggression against their fishing fleet... This I'd definitely a big game of high stakes poker (although given who is involved perhaps I should say majong instead)
http://www3.nhk.or.jp/daily/english/20120917_22.html
rare earth exports to japan, page-4
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