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

Japanese Prime Minister Sanae Takaichi is expected to call China an "important neighbour" and pledge to build a stable relationship between the rival nations in a policy address on Monday, according to media reports.

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.

Takaichi will likely say she plans to build a constructive and stable relationship with Beijing and describe China as "an important neighbour", private broadcaster TV Asahi reported, citing an early draft of the speech set to take place in Japan's parliament on Monday.

The premier was also expected to signal her government would draft a comprehensive plan to deal with population decline, which she will call a "quietly advancing national crisis", Kyodo News reported, citing unnamed government sources.

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 comments she made about Taiwan last year.

The policy speech comes 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 will likely pledge to formulate a comprehensive strategy by the end of the year, Kyodo reported.

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 will also repeat her commitment to a proactive and responsible fiscal policy, after her programme of expansive government spending has rattled markets, the reports said.

The speech will kick 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 will also include a pledge to support the International Criminal Court after the United States targeted the tribunal's Japanese President, Tomoko Akane, with sanctions in August, the media reports said.