U.S. President Donald Trump asked Japanese Prime Minister Sanae Takaichi avoid further escalation in a dispute with China during a call this week, two Japanese government sources with knowledge of the matter said, Reuters reported.

Takaichi sparked the biggest diplomatic bust-up with Beijing in years when she told parliament earlier this month that a hypothetical Chinese attack on Taiwan could trigger Japanese military action.

That drew a furious response from Beijing, which claims democratically governed Taiwan, and a demand for Takaichi to retract her remarks - which has not been forthcoming, according to Reuters.