Tensions are high between East Asian neighbours China and Japan. China accuses Japan of failing to repent for historical wrongs, while Japan accuses China of dwelling on the past. But behind the talk of the past there are also fears and ambitions for the future. As China speeds towards economic parity with the Japanese heavyweight, competition for resources and markets is growing. Both wish to match their economic prowess with leading roles in world diplomacy. Both are anxious to take maximum advantage of a rapidly changing regional power balance.