China and Japan, which generated two-way trade of $345 billion last year, are arguing over the uninhabited islets in the East China Sea, a long-standing dispute that erupted last week when the Japanese government decided to nationalise some of them, buying them from a private Japanese owner. Enlarge Image Close Associated Press Protesters shout anti-Japan slogans in Shanghai on Tuesday, the anniversary of a 1931 incident that led to Japan's invasion of China's Manchuria. There were signs matters were starting to return to normal for Japanese businesses, many of which closed as a precaution after protesters over the weekend attacked Japanese restaurants and cars. China's worst outbreak of anti-Japan sentiment in decades led to protests and attacks on Japanese companies such as car makers Toyota Motor Corp and Honda Motor Co, forcing them to halt operations and prompting Chinese state media to warn that trade relations could deteriorate. The Japanese coast guard said it has so far been unable to confirm the arrival of the fishing boats, but it spotted one Chinese fisheries patrol ship in waters near the disputed islands shortly before 7 a.m. (2200 GMT) 
 
 The Japanese government has set up an information-gathering operation to monitor the movements of the Chinese fishing boats. "The Japanese government should lodge a strong protest with China," former Prime Minister Shinzo Abe said in one recent intraparty debate, according to Kyodo News.
– Anti-Japan protests over the disputed East China Sea islands continued for a fourth day today in China, and Christian Science Monitor Beijing Bureau Chief Peter Ford describes the almost amusing orderliness of them. "The Beijing Public Security Bureau reminds you to please express your patriotism in a rational and orderly fashion and to follow police instructions. Thank you for your cooperation," reads a text message from the Beijing police. And protesters at the Japanese embassy did just that, forming small groups and waiting their turn to march past … as they threw water bottles at the gates. Meanwhile, a loudspeaker played a message on a loop: "The Chinese government shares the people’s feelings. The government has made it clear it will not accept any territorial infringement. But once you have expressed yourself, please move on." Thousands of police guarded the embassy, a sign that China wanted to avoid protests turning violent as they did over the weekend. But, though protests remained mostly peaceful, some demonstrators were attacking Japanese companies including Toyota and Honda, leading hundreds of such businesses to temporarily shut down, the Christian Science Monitor reports. The embassy also suspended services. Meanwhile, Japan was boosting defenses around the islands as a 1,000-strong flotilla of Chinese fishing boats reportedly approached. Japan hasn't seen them yet, but did say 10 Chinese patrol boats are in the area, and added that two Japanese nationals landed on one of the islands today. China quickly complained, the Wall Street Journal reports, and also asserted that it reserves the right to "take further actions," perhaps military ones if necessary, according to the defense minister. Further complicating the situation, Taiwan also claims the disputed area, but wants to help resolve the conflict, Voice of America reports.