Japanese Prime Minister Junichiro Koizumi, one of 16 leaders at the summit next week in Malaysia, has taken an increasingly defiant tone toward China, which accuses Japan of not atoning for its wartime atrocities.

After China said it would refuse a customary trilateral meeting with Japan and South Korea, let alone a one-on-one with Koizumi, the premier quipped, "If they are postponing, that's not a problem."

Even with multilateral summits coming up, Koizumi in October again visited the Yasukuni war shrine which is at the heart of bilateral friction. He then reshuffled his cabinet to elevate leading hardliners.

Japan is calculating that it has no reason to budge to China's frequent protests as trade between them remains at a record level, analysts said.

Akihiko Tanaka, head of the Institute of Oriental Culture at the University of Tokyo, said that despite the friction, "there is nothing urgent for Japan and China to talk about."

"One concern is that the cancellation might create an image that Tokyo takes the blame for everything and Beijing is right about the whole issue. If such an image is created at the East Asia Summit, that could strain Japan's ties with Southeast Asia, which currently are very good," he said.

"China will try to show its influence in Asia at the East Asia Summit. Japan will try to do the same. It will just be a question of which has a more attractive hand to show," Tanaka said.

Japan will have to do that without its steadfast ally, the United States, which has been pointedly excluded from the summit.

Some feel the US absence could be a boon for Japan, whose foreign policy is often seen as being one and the same as Washington's.

The East Asia Summit "is an opportunity for Japan to rejoin the community of Asia," said Kenichiro Hirano, professor of international politics at Waseda University.

"Japan has neglected Asian diplomacy. It has only looked to the United States. Japan can change this attitude," he said.

Japan has been pursuing free trade deals with the region, reaching agreements with Singapore, Malaysia, Thailand and the Philippines and negotiating with Indonesia and ASEAN as a bloc.

Tokyo was also a major donor after the Indian Ocean tsunami, disbursing 500 million dollars in aid and deploying 950 troops to Indonesia -- its largest deployment since World War II.

Foreign Minister Taro Aso, speaking on the eve of his departure for Malaysia, said Japan was remorseful for the past and wanted Asia to look at its 60 years of pacifism.

While remaining distant from China, Aso said Japan hoped to work with South Korea "to promote stability and development in Asia as the two major democratic powers in the region."

Tanaka, the professor, said Japan "can talk about universal values that other Asian countries cannot discuss, such as the rule of law and democracy."

"It is hard to imagine grand decisions would be made at the summit. But the event can provide an opportunity for Japan to emphasize the importance of universal values," Tanaka said.

But China is also likely to use the East Asia Summit to show off its improving ties with ASEAN, said Shigeaki Uno, China expert and president of the University of Shimane.

"Japan and China will always have differences, because the two are major countries sitting in the same region. What must happen is negotiations and compromises," he said.

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