Chinese submarines lurk in Japanese territorial waters, Sino-Japanese dispute rights to offshore gas fields, the European Union formally declares China a "strategic partner".
Great Balls of Smoke!
"Bonhomie is officially back in transatlantic relations after George Bush's fence-mending trip to Europe - but a fresh divisive crisis could be looming over the EU's determination to lift its 14-year arms embargo on China."
"China's growing domestic defence manufacturing capability has rendered the EU's arms embargo meaningless".
"While Japan's Middle Eastern oil supplies are shipped through the Taiwan Straits, US concerns about Chinese rising power causes "deep concern" about any "change in the balance of relations between China and Taiwan".
The US Treasury would go belly-up if either Japan or China decide to call in their markers!
"The US could retaliate by curbing technology exchanges with the European Union"
Watch Old Europe retaliate and stop exporting their Einsteins and Von Brauns.
The U.K.'s Gordon Brown, touting for business in Beijing and Shanghai while Mr Bush is in Brussels...