Better late than never: China seizes Japanese cargo ship as payment for an unpaid compensation debt from 1936

119,000-tonne ore freighter Baosteel Emotion is more than 1,000ft long



Seizure seen as show of strength ahead of Obama's visit to Tokyo tomorrow



Japan's PM Shinzo Abe demanded China 'take appropriate measures'

Owners' predecessor reportedly rented two ships from the Chinese in 1936

But they were commandeered by the Imperial Japanese Navy and sunk



China has seized a 119,000-tonne Japanese cargo ship in a dispute over a Second World War debt dating back 78 years.



Shanghai impounded the 1,050ft-long ore freighter Baosteel Emotion after a court ruled Japan still owed £17million for two Chinese ships which were commandeered by the Imperial Japanese Navy and sunk.



But the seizure on Saturday has sparked a diplomatic incident and led Japan's Prime Minister Shinzo Abe to announce: 'We are demanding China take appropriate measures'.

Seized: The 119,000-tonne Baosteel Emotion has been impounded by China over a 78-year-old war debt

Dispute: Japan's Prime Minister hit out over the move, which some have seen as a Chinese show of strength

The dispute stems from the loan of two ships from the Chinese Zhongwei Shipping Company in 1936.

They were rented for a year by a firm which later became Japanese shipping giant Mitsui O.S.K. Lines, the owner of the freighter which is now in dispute.

But the ships were reportedly commandeered by the Imperial Japanese Navy and sunk during the Second World War, a time in which Japanese forces occupied large parts of China.

China claimed the debt was never repaid, and a compensation claim was opened by the descendants of Zhongwei's founder in a Shanghai court 25 years ago.

In 2007, officials ruled Mitsui had to pay compensation and the firm later lost an appeal in China's Supreme People's Court.

Huge: The 1,000ft ship entered service as an ore freighter in 2011 for Japanese shipping giant Mitsui Dispute: The location of the ship in the East China Sea, according to GPS mapping, puts it near Shanghai

The move marks an escalation of tensions between Japan and China, who have for decades been locked in a dispute over a small archipelago in the East China Sea.

The Senkaku Islands - which are also claimed by Taiwan - were handed back to Japanese control by the U.S. in 1972 despite being far closer to the Chinese mainland.

A series of lawsuits connected with wartime forced labour have also been filed in China against Japanese corporations.

Some see the latest move as a show of strength by China during U.S. President Barack Obama's official tour to east Asia, which will see him arrive in Tokyo tomorrow.

Japanese politicians say the seizure is against the spirit of a 1972 pact in which China said it would no longer demand war reparations from Japan.

Water under the bridge? Japanese PM Shinzo Abe claimed the move was against the spirit of a 1972 pact Deadlock: The move marks an escalation of tensions between Japan and China, who have for decades been locked in a dispute over a small archipelago in the East China Sea which was handed to Japan in 1972

Japan's Chief Cabinet Secretary Yoshihide Suga said: 'We have told the Chinese side through diplomatic channels that we regret its seizure of the vessel... we demand China take appropriate measures.'

The ruling could 'intimidate Japanese companies doing business in China', he added, and Japan was 'deeply worried'.

Prime Minister Shinzo Abe described the Chinese move as 'regrettable', adding: 'What's important is to observe the spirit of the rule of law.'

But China said the civil case had nothing to do with the pact of 1972.

The seized ship left the island port of Majishan at 7.20pm local time today and is now in the East China Sea near Shanghai, according to GPS maps.