The Liberal Democratic Party's top foreign policy planners approved a panel report Friday proposing that Japan's official development assistance to China should be reduced in the light of the domestic economic situation.

Meanwhile, party officials said LDP policy chief Shizuka Kamei agreed the same day to a reduction of up to 3 percent in Japan's overall ODA to developing countries in fiscal 2001.

The report concerning Japan's ODA to China was prepared by the LDP's special committee for foreign economic cooperation and endorsed by the joint division on foreign affairs.