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.

The remarks come amid the two countries’ worst diplomatic crisis in years, after the Japanese prime minister said a Chinese attack on Taiwan could trigger a military response from Tokyo.

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.

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.

China advised its citizens Friday to refrain from traveling to Japan in the near future. It cited earlier attacks against Chinese in Japan and what it called Prime Minister Sanae Takaichi 's "erroneous remarks" on Taiwan, which it said undermined the atmosphere for China-Japan exchange.

China's escalating confrontation with Japan is colliding directly with its attempt to join one of the world's most demanding trade agreements.