Japan's PM to call China 'important neighbour' in policy address: Report

Japanese Prime Minister Sanae Takaichi is set to address China as an "important neighbour" and pledge to foster a stable relationship during her policy speech on Monday, according to media reports. Diplomatic tensions between the two Asian economic powers have been strained since Takaichi suggested in November that Tokyo might step in to protect Taiwan in the event of an attack, a claim Beijing regards as a territorial dispute.

The premier is expected to outline a comprehensive strategy to address Japan's rapidly declining population, which fell below 120 million for the first time in four decades last July. Takaichi's government is also preparing to cut a consumption tax on food for two years in an effort to mitigate the impact of inflation on citizens' daily lives.