Tensions between the Asian neighbours flared up after new Japanese Prime Minister Sanae Takaichi said this month that a Chinese attack on Taiwan threatening Japan's survival could trigger a military response.

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.

Less than a month into her term, Japan's conservative leader has stirred tensions with China by suggesting a Chinese move against Taiwan could prompt a Japanese military response.

Beijing is flexing its military and economic might to show its displeasure with the Japanese leader’s comments about defending Taiwan. But its aggressive approach risks backfiring.

An off-the-cuff remark by new Prime Minister Sanae Takaichi that triggered Japan's biggest bust-up in years with powerful neighbour China was not meant to signal a new hardline stance.

China and Japan are two of Asia’s most powerful nations and the region’s biggest trading partners. Yet centuries of intense rivalry mean their economic embrace can never be taken for granted.