Japan needs to improve common understanding among Asian countries in addition to promoting trade and investment relations with them, according to a high-ranking Japanese official.

Taichi Sakaiya, an economist and director-general of the Economic Planning Agency of Japan, made the comment here today in a speech titled The Revolution of Knowledge Value in Japan and ItsCooperation with Asian Countries.

He stressed that it is important for Japan to strengthen relations with other Asian countries.

He said that the "Japanese economy in fiscal year 1999 (April 1999 to March 2000) is still in severe condition but is achieving gradual recovery" and he expected the Japanese economy "will return to a clear path of growth" in the latter half of the fiscalyear 2000 -- April 2000 to March 2001.

The renowned economist pointed out that one of the most important policies for Japan is to consolidate the recovery of the Japanese economy through stimulating demand, and just as important,to increase budget for economic structural reform.

Today's function, sponsored by the China International Culture Exchange Center, the Japanese embassy and the China-Japanese Chamber of Commerce and Industry, attracted more than 300 scholarsand experts from economic, financial and academic circles of the two countries.