Japan has suspended new yen loans to China because relations between the two countries have become so badly strained, the Financial Times reported. This is the first time a reduction or freezing of loans has been directly linked to politics. Shinzo Abe, chief cabinet secretary, said Tokyo would �put off making a decision on yen loans for this fiscal year to China�because of various situations surrounding Sino-Japanese relations�. In the past, Japan has cited China’s growing economic power as a demonstration that the country no longer requires large amounts of aid. Japanese soft loans of US$25.7 billion have helped to build much of the infrastructure in China’s booming coastal metropolises.