China's defence ministry said on Thursday that Japan will have to pay a "painful price" if it steps out of line over Taiwan, responding to Japanese plans to deploy missiles on an island some 100 km (62 miles) from Taiwan's coast.

The president has spoken with the leaders of both countries as they spar over remarks the Japanese prime minister made about the Beijing-claimed island democracy.

Yee Lee and Ben Blanchard TAIPEI (Reuters) -Taiwan prosecutors said on Thursday investigators had raided the homes of a former senior TSMC executive and seized computers after the company accused him of leaking trade secrets,

The budget will be allocated over eight years as part of the island's strategy to deter a China's threats of invasion

The remarks come amid the two countries’ worst diplomatic crisis in years, after the Japanese prime minister said a Chinese attack on Taiwan could trigger a military response from Tokyo.

Taiwan has already held preliminary talks with the United States about what weapons it wants to buy as part of a $40-billion supplementary defence budget, Defence Minister Wellington Koo said on Thursday.

Taiwan President Lai Ching-te outlined his administration’s proposal for a $40 billion defense supplemental this week that would fund an island-wide air defense system and the procurement of missiles,

China closed off Japanese seafood imports after Japan’s new leader declared strong support for Taiwan. Suddenly, sushi is everywhere on Taiwanese social media.