Japan has warned its citizens in China to step up safety precautions and avoid crowded places amid a deepening dispute between Asia's two largest economies over Japanese Prime Minister Sanae Takaichi's comments on Taiwan.

Takaichi sparked the most serious diplomatic clash in years when she told Japanese lawmakers this month that a Chinese attack on Taiwan threatening Japan's survival could trigger a military response.

The dispute could deal a blow to Japan's economy, as Beijing has urged its citizens not to travel there. Chinese form the largest number of all tourists to Japan, accounting for nearly a quarter, official figures show. Tourism-related stocks in Japan plunged on the news.

Masaaki Kanai, a senior official from Japan's Foreign Ministry, left, and Liu Jinsong, China's director

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