The diplomatic rift between Beijing and Tokyo is also a test of Washington’s appetite for engagement with the region

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.

Trade cooperation between China and Japan has been "severely damaged", the Chinese commerce ministry said on Thursday, urging the Japanese prime minister to retract her comments on Taiwan or face the consequences.

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.

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.

Facing reprisals from Beijing for a remark over Taiwan, Prime Minister Sanae Takaichi must walk a fine line to prevent escalating the dispute without looking weak at home.

Japan will likely lean more heavily on the US and its allies if China escalates economic pressure, as Tokyo seeks to navigate the fallout from Prime Minister Sanae Takaichi’s remarks linking Taiwan’s security to its own.

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

China's envoy to the United Nations on Friday submitted a letter to UN Secretary-General Antonio Guterres detailing Beijing's position on what it calls "erroneous and dangerous" remarks made by Japanese Prime Minister Sanae Takaichi about Taiwan, according to the Chinese mission to the UN.

China stepped up its economic war with Japan on Wednesday as a dispute between Asia’s two biggest economies intensified over a remark by Tokyo's new leader about a Japanese response to any Chinese military move against self-ruled Taiwan.

China has reacted strongly to Japan’s Prime Minister suggesting an attack on Taiwan could prompt Japan to militarily intervene.

The renewed dispute undermines Seoul’s efforts to restore trilateral cooperation in Northeast Asia amid rising threats from North Korea.