BEIJING/TOKYO (Bloomberg): China is escalating its confrontation with Japan over Prime Minister Sanae Takaichi’s comments on Taiwan, with state media threatening major countermeasures after Beijing’s travel warnings raised the specter of economic retribution.

Yuyuantantian, a social media account linked to China’s state broadcaster and frequently used to signal official policy, published a commentary over the weekend warning that Beijing "has made full preparations for substantive retaliation.” The post hinted at imposing sanctions, suspending economic, diplomatic and military ties, and restricting trade as forms of potential reprisal.

Hours later, the People’s Liberation Army Daily reinforced that message publishing a commentary by a state-affiliated scholar warning that if Japan’s military got involved in the Taiwan Strait "the entire country would risk becoming a battlefield.”

The diplomatic crisis risks unraveling recent progress in bilateral ties, just a few weeks after Takaichi met with Chinese President Xi Jinping and agreed to improve relations. The spat also threatens to inflict damage on businesses straddling the key trading partners, as China warns tourists and stude

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