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Meanwhile, hyping up the issue at the G7 platform is also Japan's attempt to sow discord between China and major European countries, he said.

Factories made workers redundant at a slightly more rapid pace, with the employment sub-index down 0.3 point to 47.8.

The two countries also support a China-EU investment agreement to be reached through negotiations as soon as possible.

With new lending booming in the first quarter, fiscal policy more expansionary and the yuan more supportive, tailwinds for resilient growth will continue to blow in the months ahead, it said.

The Japanese side would like to reaffirm that China and Japan are partners rather than threats to each other, he said, noting Japan is willing to follow the four political documents and the four-point principled agreement between the two countries.