Japan is seeking a major reduction in its host-nation financial support for U.S. forces stationed in Japan, but Washington reportedly hopes Tokyo will ramp up its contribution in light of China's military buildup, Japanese government sources said Friday.

Japan, which has struggled to restore its financial health, is apparently calling for a decrease of more than ¥50 billion ($415 million) from fiscal year 2016, beginning next April, from the current approximate ¥190 billion, according to the sources.

The foreign and defense departments of the two countries have been holding negotiations since July to define a new pact authorizing Japan's host-nation support, as the current deal will expire at the end of March, they said. The next negotiating session is likely to take place in early November.

Japan is seeking a basic agreement in the negotiations by mid-December before compilation of the fiscal 2016 budget, they said.

Of the salaries Japan is currently paying for about 22,000 workers at U.S. military bases in the country, Tokyo hopes for a reduction in its payments to some 5,800 people working at supermarkets, restaurants and entertainment facilities, including bowling alleys, that service U.S. military personnel, according to a government source.

Japan also wants a reduction in its payment for utility fees incurred by U.S. military facilities, the source said.

Japan's financial burden is expected to increase under its recently-enacted security legislation. "Unless the host-nation support is decreased to make up for (the expected increase), it would be difficult to get public backing," a Japanese Defense Ministry source said.

Washington has also paid more for its forces in Japan due to the deployment of resources like its two state-of-the-art Aegis destroyers, the sources said.