Japan PM calls China 'important neighbour', pledges stable relationship

Japanese Prime Minister Sanae Takaichi called China an "important neighbour" and pledged to build a stable relationship between the rival nations in a policy address on Monday.

Diplomatic relations between the Asian economic giants have been at rock bottom since Takaichi suggested in November that Tokyo may intervene in any attack on the island of Taiwan, which Beijing claims as its territory.

"China is an important neighbour, and despite difficulties, we have built up a long-standing relationship over the years," she told parliament.

"We will work to ensure communication on shared challenges, promote dialogue to safeguard our national interests, and build a constructive and stable relationship."

But she added that Japan would also "firmly assert our country's positions" and "strongly call for responsible behaviour".

The premier also signalled her government would draft a comprehensive plan to deal with population decline, which she called a "quietly advancing national crisis".

Despite enjoying unusually high approval ratings a year into office, the prime minister is navigating a number of challenges including rising inflation, market concerns about Japan's mounting debts and a diplomatic spat with China that has been rumbling since making the comments about Taiwan last year.

The policy speech came after China's top diplomat said last week ties with Tokyo were "waiting to be normalised again" as he met a former Japanese foreign minister who was leading a trade delegation in Beijing.

China had last year warned its citizens against travel to Japan, and imposed trade restrictions that have reportedly led to big drops in supplies of vital rare earth minerals to Japanese firms.

On population decline, Takaichi pledged to formulate a comprehensive strategy by the end of the year.

The number of Japanese people living in the country fell below 120 million for the first time in 42 years, according to government data released in July.

Takaichi also pledged to ensure she had the trust of the market, repeating her commitment to a proactive and responsible fiscal policy, after her programme of expansive government spending rattled markets.

The speech kicked off a parliamentary session that will run through to December and discuss several bills, including plans to cut a consumption tax on food for two years to curb the impact of inflation on voters' daily lives.

The premier's speech also included a pledge to support the International Criminal Court after the United States targeted the tribunal's Japanese President, Tomoko Akane, with sanctions in August.