Just days after China issued an advisory against traveling to Japan, the cancellations started. About 3,000 Chinese visit Rie Takeda's tearoom in an alley in Tokyo's historic Asakusa district every year.

Japan's new leader prime triggered the dispute by saying Japan could intervene in a confrontation between China and Taiwan.

China's defence ministry said on Thursday that Japan will have to pay a "painful price" if it steps out of line over Taiwan, responding to Japanese plans to deploy missiles on an island some 100 km (62 miles) from Taiwan's coast.

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

Tensions developed after Prime Minister Sanae Takaichi said that if China fought to take Taiwan, it could amount to a 'survival-threatening situation” for Japan.

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.