Japan Hopes China Friction Won't Hurt Finance Ties

A Japanese Finance Ministry official says Tokyo is hoping the recent flare-up in friction with China will not damage the two Asian economic powers' cooperation in international finance.

Takehiko Nakao, a vice minister for finance, said reports Wednesday that representatives of some big Chinese banks were canceling plans to attend the annual meetings of the International Monetary Fund and World Bank in Tokyo next week was "very disappointing."

He said Japan had no news of any cancellations by Chinese government officials. China's government and business offices are closed this week for a national holiday.

Among other initiatives, the two sides were working on mutual holdings of government bonds.

Nakao said the relationship with Beijing was too important to be derailed by antagonism over disputed islands in the East China Sea.