The government will compile a record 115.5 trillion yen ($734 billion) initial budget for fiscal 2025 as defense and social security spending continue to rise while debt-servicing costs also weigh on Japan's public finances,

China and Japan agreed Wednesday to set up talks on often contentious security issues as they seek to improve a relationship riven in recent years by a range of issues, from territorial disputes to the discharge of water from Japan's tsunami-wrecked nuclear power plant.

Talks between China and Japan's foreign ministers in Beijing have paved way for Japan to host China's foreign affairs chief next year, and mutual agreement to hold a security dialogue as soon as possible,