TOKYO - Sino-Japanese ties are now at their closest since Tokyo nationalised the Senkaku/Diaoyu islets in 2012, but Japanese analysts say the improvement is confined to the areas of business, the economy and people-to-people exchange.
Neither side, however, has budged on strategic issues like their territorial dispute and each eyes with mistrust the other's defence strategy and expanding military budget. Japan named China as a key security threat in its latest Defence White Paper, released on Tuesday (Aug 28).
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