Canon Panasonic to halt production --report from Nikkei

Its all about fishing rights (Japan claims a 200 mile exclusive right I believe, around their territory) plus potential oil and gas.

I worked 40 years in the oil business, and was based in Tokyo for 6 years in the 90's. One time, a young reporter from Reuters interviewed me, and mentioned a dispute (the Spratley's) that was in the news at that time. Some of those islands were claimed by as many as 7 countries. The reporter asked me which country did I think had the best claim to those islands. I answered - which country did he think has the best Navy.