OSAKA -- Foreign Minister Yoriko Kawaguchi said Saturday she believes it is necessary for Japan to extend economic assistance to China, despite international concerns about the country's increasing military budget.

"China meets the international standard for countries that need assistance and it is also very important for Japan that China, which is its neighbor, be peaceful and stable," Kawaguchi said during the ministry's second town meeting in Osaka.

She said the average annual income per person in China is $600, well below the $1,500 set as an international standard for recipients of grant aid and the $3,000 for those eligible to receive loans.