Diaoyu Island, Land of Controversy China suspended high-level government exchanges with Japan, significantly escalating the two countries' worst dispute in five years, after Japanese authorities extended the detention of the captain of a Chinese fishing boat detained near disputed islands in the East China Sea. which could provoke fresh nationalist protests across China this week and potentially damage commercial relations between the world's second- and third-largest economies. China and Japan have frequently clashed over the unpopulated islands, known as the Diaoyu in China, and the Senkaku in Japan, whose waters are thought to contain substantial natural-gas reserves,