The rhetoric from both sides has been increasingly provocative in recent months but there remains a window of opportunity for the new leadership of China and the Japanese government to avoid confrontation.
China is also embroiled in a complex dispute in the South China Sea where there are overlapping territorial claims involving Vietnam, Brunei, Malaysia, Philippines, Taiwan and Indonesia.
Again the attitude of China's new leaders will be crucial in determining whether or not a negotiated settlement can be found.
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Conflict between China and any of its regional neigbours has the potential to impact on Australia in terms of trade and investment flows and our overall security.
While the US presidential election remains the most important democratic contest in the world, other leadership contests are under way that have the potential to profoundly impact on Australia's national interests.
The leadership transition in China may lack the drama and theatre of the US race for the White House, but it has important implications for Australia.
We should focus on leadership changes in our region as much as we are enthralled by the leadership contest in the United States.
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