Top China Stories from WSJ: Wang Lijun Back Story, Strained Ties - Wall Street Journal (blog)

Your daily roundup of the best of The Wall Street Journal’s China coverage:

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As Scandal Shook China, Quiet Spy Game Unraveled: In spy-speak it is known as a “walk-in”â€"an unsolicited approach to a diplomatic mission by a foreigner claiming to have sensitive information. And when an agitated former police chief, Wang Lijun, entered a U.S. consulate in early February with an eye-popping tale about the death of a British citizen, the stakes could hardly have been higher.

China-U.S. Tensions on the Rise: Political pressures in both the U.S. and China are straining ties between the two superpowers as President Obama seeks trade sanctions and Beijing faces off with Japan over an island dispute.

Japanese Firms Hunker Down in China: Reacting to anti-Japan protests that struck parts of China over the weekend, some of Japan’s largest companies on Monday shut factories, advised their employees to stay home and closed shops, moves that have aggravated tensions between the world’s second and third-largest economies.

China Property Prices Rise for Third Straight Month: Average property prices in 70 Chinese cities in a government survey rose for a third straight month in August on a sequential basis, indicating the turnaround in Juneâ€"which broke eight months of declineâ€"is gaining pace.

Heard on the Street: China Smashes Japanese Cars, and Buys Them: There likely won’t be any quick resolution in the dispute between China and Japan for control of an obscure group of islands. But there’s already one clear loser: the Japanese car industry. (Subscriber Content)