Beijing's latest response to Japanese Prime Minister Sanae Takaichi’s Taiwan comments is adding to uncertainty for businesses caught in the middle.

As China reportedly mulls a ban on Japanese seafood amid a standoff between the Asian neighbors, Taiwan's leader shows support for Tokyo, with his lunch.

Takashi Ito, owner of a restaurant in Shanghai, had been looking forward to China's lifting of a ban on imports of Japanese seafood - only to have his hopes dashed this week amid an increasingly heated diplomatic spat between Beijing and Tokyo.

Beijing suggested it might reimpose a ban on seafood imports from Japan after warning its citizens to avoid travel there and postponing the releases of at least two Japanese movies.

Beijing is using its economic power and military muscle to convey its anger with Japan’s new prime minister, Sanae Takaichi — and to send a message to the U.S.

Tension between Japan and China has escalated over the new Japanese leader's suggestion Tokyo could intervene militarily if Beijing attacks Taiwan.

Japan and China recently agreed to cooperate more economically. Now, climbing tensions are threatening that cooperation.

Chinese automakers are exerting increasing influence in the Japanese auto market, particularly in the compact-car segment where domestic brands have long been dominant. The entry of Chinese manufacturers such as BYD (OTCPK:BYDDF),