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

Relations between the two neighbours have soured recently after Takaichi became the first sitting Japanese leader in decades to publicly link a Taiwan Strait crisis with the possible deployment of Japanese troops.

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

From China’s point of view, the Japanese Prime Minister’s remarks on Taiwan test a red line - a trigger that sets this dispute apart from past flare-ups, analysts say.

China's Premier Li Qiang has no plans to meet with the Japanese prime minister on the sidelines of the upcoming G20 summit in South Africa, the Chinese foreign ministry said on Monday, as tensions over Taiwan deepen.

The postponement comes barely two weeks after remarks about Taiwan by Japanese Prime Minister Sanae Takaichi sparked a heated response from China and kicked off the most serious diplomatic clash between the two East Asian powers in years.