Japan to review aid for booming China

[Kevrai]

Japan to review aid for booming China

Tokyo (CNN) -- Japan will review and possibly cut financial aid to China, in light of Beijing's growing economic power, the nation's foreign ministry said Friday.

"With China overtaking Japan in terms of gross domestic product, it is completely inconceivable for Japan, which has been outranked, to increase its ODA (official development assistance)," said Japan's foreign minister, Seiji Maehara, on the floor of the parliament Friday.

Last year, China overtook Japan as the world's second largest economy.

Maehara also said he has instructed the ministry to conduct an official review of Japan's ODA policy for other countries, in light of Japan's economic challenges.

The Democratic Party of Japan, the nation's ruling party, has been under increasing pressure to cut the country's spending deficit.

Japan has the developed world's highest debt to gross-domestic-product ratio, nearing 200%. GDP is a broad measure of a nation's economic output.

The government is also struggling with a dwindling worker and tax base, as Japan ages faster than any other country in the world, because of its long lifespan and low birth rate.

Tokyo started extending aid to China in 1979, but stopped fresh loans in 2007. Japanese loans to China during the 2008 fiscal year totaled 3.32 trillion yen or about US $40.5 billion, according to Tokyo.

From CNN's Kyung Lah

Japan to review aid for booming China - CNN.com

 

[blackops]

Well 40 bn $$$ is some amount bein spent by japan

 

[tanlixiang28776]

Well 40 bn $$$ is some amount bein spent by japan

loans not aid. we have to pay it back like any other country.

 

[ao333]

Well 40 bn $$$ is some amount bein spent by japan

Loans aren't spent; they're loaned, just like how the Chinese loans America over a trillion dollars every 3-10 years. The actual aid or "free money" was $13 million (1 luxury house). Even then it doesn't come in cheque, but 0-return investments which is way too cheap for the level of PR Japan is enjoying.

 

[blackops]

loans not aid. we have to pay it back like any other country.

Brother i know that am saying 40 bn $$ is a huge amount to give well in what time do you have to return it back

 

[cross1993]

We can return aid to Japan, and Japan should pay the WW2 compensation to China.

 

[below_freezing]

This aid is their repayment for WW2. They have a long way to go, 40 billion is nothing compared to the trillions in damage.

 

[Kevrai]

This aid is their repayment for WW2. They have a long way to go, 40 billion is nothing compared to the trillions in damage.

Japan cutting aid will not harm relationship

* Source: Global Times
* [08:52 March 04 2011]
* Comments

As statistics show China clearly outpacing Japan as the world's second largest economy, debate over whether to cut aid to China has re-surfaced in Japan.

Some officials believe the financial aid, which began in 1980 to help China out of poverty, is no longer needed since the country now boasts the biggest high-speed rail network and is sending a Mars orbiter into space.

Others are worried about the potential negative impact this may have as the aid has helped soothe anti-Japanese sentiment in China.

Both concerns are partially true, but do not reflect the real role Japanese aid plays in China.

Japan began aid to China partly as a friendly gesture in return for China forfeiting its rights to ask for compensation for Japan's wartime atrocities.

The aid, coming mainly as loans in the earlier years, greatly helped China to build up its infrastructure such as airports and railways.

However, in recent years the purpose of aid to China has gradually transformed from poverty relief and basic development to higher-level exchange and cooperation.

Beside programs to help China deal with its deteriorating environment, to seek more efficient energy use and to train Chinese officials in Japan, Tokyo is also helping shape Chinese society and government. The Chinese anti-monopoly law, passed in 2007, is believed to have greatly benefited from an anti-monopoly project funded by the Japanese government.

Japanese companies participating in these programs also benefit from the exchange. The billions on yen in aid have often flowed back to Japan, as a large part of these grants went toward purchasing Japanese facilities or paying for Japanese personnel, according to Chinese officials familiar with foreign aid programs.

The ongoing aid in financial grants and technical cooperation, respectively standing at 1.3 and 3.3 billion yen in the 2009 fiscal year, are indispensable for both China and Japan at present.

The fear of sparking anti-Japanese sentiments is also unnecessary.

Most Chinese people are sincerely thankful for what Japanese aid has accomplished down the years. Few are still thinking that Japan must repay China forever because of the past.

The country has been growing up and learning to make good use of resources gathered from home and aboard. People will not hate Japan if it cuts its aid, but they will be thankful if Japan continues exchanges with China at all levels.

It is up to the Japanese to decide whether to continue with their aid or not. But people should be cautious that this topic does not become a political plaything.

Japan cutting aid will not harm relationship - GlobalTimes


sorry buddy.....this aid isn't world war 2 reparations

 

[Aramsogo]

Sorry, this aid is not going to stop. Japan is scared. This is cheap insurance for them.

 

[cross1993]

Japan cutting aid will not harm relationship

* Source: Global Times
* [08:52 March 04 2011]
* Comments

As statistics show China clearly outpacing Japan as the world's second largest economy, debate over whether to cut aid to China has re-surfaced in Japan.

Some officials believe the financial aid, which began in 1980 to help China out of poverty, is no longer needed since the country now boasts the biggest high-speed rail network and is sending a Mars orbiter into space.

Others are worried about the potential negative impact this may have as the aid has helped soothe anti-Japanese sentiment in China.

Both concerns are partially true, but do not reflect the real role Japanese aid plays in China.

Japan began aid to China partly as a friendly gesture in return for China forfeiting its rights to ask for compensation for Japan's wartime atrocities.

The aid, coming mainly as loans in the earlier years, greatly helped China to build up its infrastructure such as airports and railways.

However, in recent years the purpose of aid to China has gradually transformed from poverty relief and basic development to higher-level exchange and cooperation.

Beside programs to help China deal with its deteriorating environment, to seek more efficient energy use and to train Chinese officials in Japan, Tokyo is also helping shape Chinese society and government. The Chinese anti-monopoly law, passed in 2007, is believed to have greatly benefited from an anti-monopoly project funded by the Japanese government.

Japanese companies participating in these programs also benefit from the exchange. The billions on yen in aid have often flowed back to Japan, as a large part of these grants went toward purchasing Japanese facilities or paying for Japanese personnel, according to Chinese officials familiar with foreign aid programs.

The ongoing aid in financial grants and technical cooperation, respectively standing at 1.3 and 3.3 billion yen in the 2009 fiscal year, are indispensable for both China and Japan at present.

The fear of sparking anti-Japanese sentiments is also unnecessary.

Most Chinese people are sincerely thankful for what Japanese aid has accomplished down the years. Few are still thinking that Japan must repay China forever because of the past.

The country has been growing up and learning to make good use of resources gathered from home and aboard. People will not hate Japan if it cuts its aid, but they will be thankful if Japan continues exchanges with China at all levels.

It is up to the Japanese to decide whether to continue with their aid or not. But people should be cautious that this topic does not become a political plaything.

Japan cutting aid will not harm relationship - GlobalTimes


sorry buddy.....this aid isn't world war 2 reparations

We think it is, that is enough.
If Japanese do not agree with our views, Japan's claim to re-negotiate WW2 reparations with China.

 

[peaceful]

$40 billion loan to China?

sure, but can I just ask how much Japanese bonds we have on hand?