Foreign Minister Taro Aso said Saturday that Japan will focus on conservation projects in extending aid to China, saying pollution is becoming a serious problem there.
"We are willing to provide enough money to help in environmental issues and we are capable of providing technical assistance," Aso said in reference to official development assistance -- chiefly loans -- to the rapidly growing nation.
China needs environmental assistance, and such aid serves the interests of Japan as well, Aso said in a speech in Kure, Hiroshima Prefecture.
The government said last month it plans to withhold authorization of yen-denominated loans to China for the fiscal year staring April 1 in light of the deterioration in bilateral ties.
Relations have spiraled downward due chiefly to the dispute over Prime Minister Junichiro Koizumi's repeated visits to Yasukuni Shrine.
Aso reiterated that Koizumi cannot halt the visits merely because China objects to them.
"Even if (the shrine issue) is resolved, don't expect Japan-China relations to improve immediately," Aso said. "Friction will inevitably occur."