Japan and China agree that a trade war will have serious consequences for the world economy, Japanese Foreign Minister Taro Kono said on Monday after a high-level economic dialogue between the world's third- and second-largest economies.Concern is growing about a trade row between China and the United States in which the two nations have threatened each other with tariffs. Japan has been criticized by US President Donald Trump on trade and been hit with tariffs on steel and aluminum, but it has not yet threatened counter-tariffs.

 “We have shared understanding that a trade war, no matter which country has brought it about, would have a very large impact on the prosperity of the international economy,” Kono told reporters after the first such dialogue in more than seven years.

Kono and the Chinese government's top diplomat, State Councillor Wang Yi, co-chaired the Tokyo meeting. Wang is also foreign minister.

Financial markets have been roiled recently over fears that a full-blown US-China trade war could shatter global trade and economic growth.