Chinese Foreign Minister Wang Yi says Japan has "crossed a red line” with comments by the country's new leader suggesting a potential military intervention over Taiwan

China is trying to impose economic costs on Japan for wading into the issue of Taiwan. But experts say the escalating dispute could ultimately hurt China too.

China has sharply condemned Japan’s plan to deploy medium‑range surface‑to‑air missiles on Yonaguni Island, just about 110 km from Taiwan, calling the move “extremely dangerous” and accusing Tokyo of stoking militarism and regional confrontation.

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

A Japanese official blasted China’s claims that Prime Minister Sanae Takaichi has altered Japan’s position on a Taiwan crisis as “entirely baseless,” calling for more dialogue to stop ties between Asia’s top economies spiraling.

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

Hong Kong's leader John Lee said on Monday his government supported China's diplomatic policy towards Japan and the financial hub would closely monitor the situation and respond appropriately.

HONG KONG -- China will suspend imports of Japanese seafood, according to ABC News partner NHK, escalating a diplomatic dispute triggered by Japanese Prime Minister Sanae Takaichi’s recent comments suggesting Tokyo could take military action if China attacks Taiwan.

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Japan has warned its citizens in China to step up safety precautions and avoid crowded places, amid a deepening dispute between Asia's two largest economies over Japanese Prime Minister Sanae Takaichi's comments on Taiwan.