The term "Diaoyu" refers to a group of small islands located in the East China Sea. These islands are also known as the Senkaku Islands in Japan. The Diaoyu Islands are claimed by China, Japan, and Taiwan, leading to ongoing territorial disputes among these nations. The islands are uninhabited and are primarily known for their potential natural resources, including fishing grounds and possible underwater oil and gas reserves. The dispute over the Diaoyu Islands has historical roots and continues to be a sensitive issue in China-Japan relations, affecting diplomatic and economic interactions between the countries.