The Sino-Japanese quarrel is not just about history. It is part of a deadly serious contest between the two countries for power and influence in the Asia of the 21st century.

From the mid-1970s, after China and Japan re-established diplomatic relations, till the late 1980s bilateral relations were reasonably amicable. But Sino-Japanese rivalry emerged in the 1990s, after the end of the Cold War. The disappearance of the Soviet Union removed a common enemy. The rise of China in the 1990s posed complex challenges for Japan which has been the leading Asian power for the previous half-century.

The advance of nationalism in both countries did not help either. China's new nationalism in the early 1990s, designed to shore up the legitimacy of communist party rule in an era when socialist ideology had lost its appeal, was based in part on glorifying the role of the party in defeating the much hated imperial Japanese army in China during World War II.

But China's constant hectoring of Japan about the latter's war time atrocities only stiffened Japanese attitudes. In such an atmosphere various incidents — whether concerning history, reported Chinese naval intrusions into Japanese waters or territorial disputes — began to acquire greater salience. Acrimony and public opinion hardened on both sides.

Prime Minister Junichiro Koizumi has kept his election campaign commitment of five years ago to visit the Yasukuni shrine regularly. Among the more than two million Japanese war dead, the shrine also honours fourteen class A war criminals. So, in the process, Mr Koizumi has put himself into a straight jacket.

The visits could be damaging to Japan's international standing, especially at a time when it wants to become a more “normal” power with a stronger military. But Mr Koizumi is not stopping his visits in part because he is determined not to be seen to be bowing to China's pressure. Indeed some well wishers of Japan wonder why Japan is shooting itself in the foot in this way.

Over the past half century, through its aid and investments, Japan has contributed enormously to the economic development and modernisation of Asia, including Southeast Asia, much more than China. It still continues to do so. Yet it is not getting commensurate returns in terms of political influence.