Japan's target of achieving 2 percent inflation by next September may be delayed as China's economic slowdown affects the price of oil and other natural resources, according to Yasutoshi Nishimura, the deputy economy minister.
China faces the challenge of changing the structure of its economy in the middle to long term, said Nishimura, who is helping spearhead the government's reform plans as the right-hand man to economy minister Akira Amari, a key architect of Abenomics. Japan hopes China will deal with the issues in its economy in the "correct manner" and overcome them, he said.
Japan's shipments to China fell 4.6 percent in August from a year earlier as a market rout and economic slowdown in Japan's biggest trading partner sapped demand. Disappointing Japanese data in recent months have raised concern on the outlook for economic growth after a contraction last quarter and an inflation rate that has slid back to zero.