China said yesterday that China and Japan should "properly resolve" issues related to Japan's yen loans to China. A Japanese newspaper reported yesterday that Japan has proposed cutting yen loans by 10 billion yen (US$95.38 million) to 20 billion yen each year from fiscal 2004 and putting an end to new loans by fiscal 2008. Foreign Ministry spokesman Liu Jianchao said at a regular press conference in Beijing yesterday that the yen loans are a financing cooperation between China and Japan with mutual benefits for both sides.