Visiting Chinese Finance Minister Xiang Huaicheng said Tuesday that he understands Japan's need to review its official development assistance policy toward China.
In a meeting with Senior Vice Foreign Minister Seishiro Eto, Xiang said China respects the ongoing policy review being conducted by Japan, which may decide to carry out its ODA contributions on a project basis rather than paying in the usual installments, a Foreign Ministry official said.
In December, a ministry panel on the issue said Japan should stop extending a set amount of ODA to China every few years and instead try to match the amount disbursed to each project. This may lead to a overall reduction in ODA.
Tuesday's meeting between Xiang and Eto was the first high-level bilateral contact since the report was submitted.
Eto explained to Xiang that Japan is reviewing overall ODA policy because of the nation's tight fiscal situation and said Japan considers ODA an effective foreign policy tool.
Xiang expressed gratitude for Japan's ODA, saying it has helped develop China's economy, and said Beijing wants to discuss how ODA will be provided in the future, the official said.