Japan has decided to discontinue its 40-year official development assistance projects for China, Foreign Minister Taro Kono told a news conference on Tuesday, as the need for the aid has receded since China’s economy becoming the world’s second largest.
As the two countries marked the 40th anniversary of a bilateral peace and friendship treaty on the same day, it was revealed that Japan will instead propose a new joint initiative for Asia’s two biggest economies to help build infrastructure in developing nations.
Japan has provided China with assistance totaling ¥3.65 trillion ($32.4 billion) for infrastructure, humanitarian support and environmental protection.
Japan has been a major donor of funds, especially to developing nations in the Asia-Pacific region, since the start of the overall initiative in 1954, and it helped open the China-Japan Friendship Hospital in Beijing in 1984, among other major projects under its programs.
The Japanese government now plans to launch a new framework with China to study ways to cooperate in helping developing nations, the sources said.