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.

Japan's intention to deploy offensive weapons near China's Taiwan region requires high vigilance from the international community, Chinese foreign ministry spokesperson Mao Ning said on Monday.

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.

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

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 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.

For years, China has threatened, cajoled and squeezed democratic Taiwan in an attempt to force it to fold without a costly war across the Taiwan Strait. Japan has mostly toed the US line of “strategic ambiguity”, rarely speaking out and officially saying that the dispute can be resolved through dialogue.

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