The Kan administration is considering drastically cutting back on aid to China, given that its economy is now bigger than Japan's, government sources said.
Foreign Minister Seiji Maehara has instructed his deputies to examine the feasibility of reducing the size of ongoing grants and technical cooperation so the administration can thrash out a plan around June, the sources said Tuesday.
Japan began extending aid to China in 1979 and had provided ¥3.32 trillion in loans, ¥154.4 billion in grants and ¥170.4 billion in technical cooperation as of fiscal 2009. Fresh loans were halted in fiscal 2007.