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.

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.

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.

The United States has reiterated its firm backing for Japan as tensions rise over China’s objections to Tokyo’s comments on Taiwan.

The call, not previously flagged by either country, came weeks after the two leaders met in South Korea, where they agreed to a framework for a trade deal that has yet to be finalized