Tokyo (CNN) -- Japan will review and possibly cut financial aid to China, in light of Beijing's growing economic power, the nation's foreign ministry said Friday. "With China overtaking Japan in terms of gross domestic product, it is completely inconceivable for Japan, which has been outranked, to increase its ODA (official development assistance)," said Japan's foreign minister, Seiji Maehara, on the floor of the parliament Friday. Last year, China overtook Japan as the world's second largest economy. Maehara also said he has instructed the ministry to conduct an official review of Japan's ODA policy for other countries, in light of Japan's economic challenges.
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China overtook Japan as the world's second largest economy last year
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Japan has the developed world's highest debt to gross-domestic-product ratio
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The nation's ruling party has been under increasing pressure to cut the country's spending deficit
Japanese loans to China during the 2008 fiscal year totaled 3.32 trillion yen or about US $40.5 billion, according to @placeholder.