Tension between Japan and China has escalated over the new Japanese leader's suggestion Tokyo could intervene militarily if Beijing attacks Taiwan.

Japan scrambled fighter jets on Sunday after accusing China of flying a drone near its southern island of Yonaguni amid rising tensions between the Asian countries. Chinese coast guard vessels spent several hours in Japan’s territorial waters around the disputed Senkaku Islands,

Withdrawal follows PM Takaichi’s Taiwan comments, prompting Beijing to issue warnings and cancel exchange events.

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.

Japanese Prime Minister Sanae Takaichi is facing her first major diplomatic test less than a month into office, after angering China with remarks about Tokyo’s position on the red line issue of Taiwan.