The current expansion of the Panama Canal will allow close to 90% of the world's 370-vessel liquified natural gas (LNG) fleet to pass through by 2015, the Panama Canal Authority announced Oct. 30. Currently the canal can accommodate only 8.6% of the global LNG fleet. Voyages to Asia from the US will cost 24% less than longer routes, according to the authority. The US, now the world's top natural gas producer due to extraction from shale rock, is projected to  become the third-largest LNG exporter by 2020. Excavation to double the Panama Canal's capacity, which began in 2007, is said to be 64% complete. (Bloomberg, Nov. 4; Platts, Oct. 30; IBT, Sept. 20)

Well, it finally came to an actual clash—albeit, thank goodness, with water cannon, not actual munitions—over the contested East China Sea islands, and it was not China but Taiwan that provoked the escalation. On Sept. 25, some 40 Taiwanese fishing vessels accompanied by 12 patrol boats dispatched by Taipei entered waters off the islets that the Chinese call Diaoyu, the Japanese call Senkaku, and the Taiwanese call Diaoyutai or Tiaoyutai. When a Japanese Coast Guard ship fired a water cannon to disperse the fishing boats, a Taiwanese patrol ship fired its own water cannon at the Japanese ship. The Taiwanese ships were apparently given a warning to clear off but refused, asserting that they had the right to be in their own territorial waters. Many of the Taiwanese ships were flying banners declaiming their national right to the islands. The Taiwanese fleet, which approached the islands at around 8 AM, departed by midday, according to Japanese authorities. (Japan Times, Sept. 26; The Telegraph, Sept. 25)

The prospect of an actual shooting war between China and Japan got a little realer this week as both sides raised the stakes in the showdown over the barren East China Sea chain known as the Diaoyu Islands to the Chinese and as the Senkaku Islands to the Japanese. Over the weekend, angry anti-Japan protests spread to 85 cities across China. In Beijing, protesters besieged the Japanese embassy, hurling rocks, eggs and bottles. Police fired tear gas and used water cannon on thousands of protesters occupying a street in Shenzhen, Guangdong province. Protesters broke into a Panasonic plant and several other Japanese-run factories as well as a Toyota dealership in Qingdao, Shandong province, ransacking and torching. In Shanghai, hundreds of military police were brought in to break up protesters outside the Japanese consulate, who chanted: ''Down with Japan devils, boycott Japanese goods, give back Diaoyu!'' (China Digital Times, SMH, Kyodo, Sept. 17)

On Aug. 15—not coincidentally, the 67th anniversary of Japan's surrender in World War II—a group of Chinese activists who had sailed from Hong Kong landed on Uotsurijima, one of the contested Senkaku Islands, and were promptly arrested by Japanese Coast Guard troops and Okinawa prefectural police. They succeeded in planting a Chinese flag on the island before five were arrested; another two managed to return to their fishing vessel and escaped. Japanese authorities say they will determine whether the detained men, now being held in Okinawa, will be prosecuted or deported back to Hong Kong. This was the first such incident since March 2004. But since 2009, the Hong Kong government has on six occasions stopped protest vessels from going to the contested islands. (Daily Yomiuri, Aug. 16; Xinhua, Japan Times, Asahi Shimbun, Aug. 16

China's move to set up a military garrison at Sansha on disputed Yongxing Island (also known as Woody Island) in the Xisha chain (claimed by the Philippines as the Paracels), along with creating a city administration for the island which has heretofore had few permanent inhabitants, is escalating tensions in the South China Sea (or, as Manila has it, the West Philippine Sea)—the key theater in Washington's new cold war with Beijing. On Aug. 4, Beijing summoned a senior US diplomat, the embassy's deputy chief of mission Robert Wang, over State Department criticism of the move. State Department spokesman Patrick Ventrell said in a statement the day before that the US is "concerned by the increase in tensions in the West Philippine Sea and [we] are monitoring the situation closely."