China seizes Japanese cargo ship to settle 78 year old debt

By Rebecca Unsworth, April 23, 2014

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China Tuesday seized a three year old Japanese cargo ship, seeking repayment for a 78 year old WWII debt involving two Chinese ships that sunk when commandeered by the Imperial Japanese Navy.

Shanghai authorities impounded the 320 metre (1,050 feet) ore freighter Baosteel Emotion, after a court ruled Japan still owed the state 178,611,554 yuan ($28,607,676) for the two ships sunk in 1936. The ships were loaned from Chinese Zhongwei Shipping Company and rented by a Japanese firm which later became shipping giant Mitsui OSK Lines. A claims case was opened in a Shanghai court 25 years ago by the descendants of Zhongwei's founder against Mitsui, and the company was ordered to pay compensation in 2007, losing an appeal at China's Supreme Court.

Japanese officials have condemned the move, claiming it contradicts the 1972 pact between the two nations, which promised an end to Chinese war reparation claims against Japan.

"We have told the Chinese side through diplomatic channels that we regret its seizure of the vessel... we demand China take appropriate measures," Yoshihide Suga, Japan's Chief Cabinet Secretary, said. Suga added that the move could damage business ties between the nations, claiming it might "intimidate Japanese companies doing business in China"and that the country was "deeply worried". Chinese officials have denied the move had anything to do with the 1972 pact.

Some have commented that the seizure is a show of Chinese power ahead of President Obama's visit to Asia, commencing with a stop in Tokyo today. According to the FT, the visit is "intended to reassure allies the US remains committed to the region in the face of China’s rising influence", with Japan likely pressing the US leader for support against what it views as China's attempts to upset post-war order in the area.

[Image via Flickr]

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