Takaichi, a hardline conservative who was approved by parliament as Japan's first female prime minister last week, is a regular visitor to Tokyo's Yasukuni shrine, which honours Japan's war dead, including soldiers and officials convicted of war crimes by an international tribunal.

From China’s point of view, the Japanese Prime Minister’s remarks on Taiwan test a red line - a trigger that sets this dispute apart from past flare-ups, analysts say.

China has intensified its economic pressure on Japan, with state-owned enterprises banning employees from travelling to its Asian neighbour, tour groups and a flagship forum being cancelled and Japanese film releases suspended.

Japan's Trade Minister Ryosei Akazawa said on Tuesday there are currently no particular changes in China's export control measures on rare earths and other materials. Akazawa's remarks come as Japan seeks to ease tensions with China amid an escalating dispute over Taiwan.

The diplomatic row over comments on Taiwan has evolved from a war of words to Beijing advising its citizens against travelling and studying abroad in Japan.

Japan's tourism-related stocks fell amid a worsening diplomatic standoff between the two nations Beijing issued a travel and study alert for Chinese citizens considering going to Japan.Japan's tourism-exposed stocks fell Monday as tensions with China intensified after Beijing issued a travel and study alert for its citizens considering going to Japan.

"We need people across the Taiwan Strait to understand that there will be a huge cost if China makes the wrong decision because Taiwanese people have the resolve and very clear co