China stepped up its economic war with Japan on Wednesday as a dispute between Asia’s two biggest economies intensified over a remark by Tokyo's new leader about a Japanese response to any Chinese military move against self-ruled Taiwan.

The declaration was reinforced two years later by the Potsdam Proclamation, issued by China, the United States and Britain and later endorsed by the Soviet Union. Japan accepted those terms when it signed the Instrument of Surrender in September 1945, pledging to fulfill the obligations laid out in the Potsdam terms.

Trump urges Japan's PM not to provoke China over Taiwan. Tensions rise as Japan refuses to retract remarks about possible military action.

The Chinese military has recently posted a war simulation video on social media in which fighter jets and tanks are deployed and missiles are launched, in an apparent demonstration of its power amid an escalating diplomatic row with Japan.

China has sharply condemned Japan’s plan to deploy medium‑range surface‑to‑air missiles on Yonaguni Island, just about 110 km from Taiwan, calling the move “extremely dangerous” and accusing Tokyo of stoking militarism and regional confrontation.

For years, China has threatened, cajoled and squeezed democratic Taiwan in an attempt to force it to fold without a costly war across the Taiwan Strait. Japan has mostly toed the US line of “strategic ambiguity”, rarely speaking out and officially saying that the dispute can be resolved through dialogue.

TOKYO - A Japanese official blasted China’s claims that Prime Minister Sanae Takaichi has altered Japan’s position on a Taiwan crisis as “entirely baseless”, calling for more dialogue to stop ties between Asia’s top economies spiraling.