Japan let the Chinese captain go.

Theoretically its a loss for Japan, but I feel that China actually lost more. Japan stood up much more than it ever has and is increasing their defence budget. China used the weapon of rare earth exports which will work once, but I am sure that many other sources outside of China will be available in the near future. . On the domestic side within China, it is a positive outcome where China stood up to foreign powers. But, China has damaged their image internationally.

References - Out, but not over - The Economist

Previous post - Japan China Spat

Labels: US Chinese Image