China is expected to closely watch whether Japan's stance on the Taiwan issue will change under a new leader, after Prime Minister Yoshihide Suga said he would step down from his post, diplomats said.

The Chinese leadership under President Xi Jinping, meanwhile, is likely to adopt a "well-balanced" diplomatic strategy that would not hurt its ties with Japan, as its strained relationship with the United States has shown few signs of improving soon, they added.

Chinese Foreign Ministry spokesman Wang Wenbin declined to comment on Suga's move on Friday, telling reporters in Beijing only that the two nations should maintain healthy and stable development of bilateral relations.