"However, at the same time, there is a need to scrutinize the lack of transparency of its military build-up in the long term," said Abe, a conservative who has nonetheless tried to repair ties with China since taking office in September.

Japan and the United States have long criticized China for its opaque but growing military budget and strongly opposed European Union proposals to scrap a ban on arms exports to China.

"I would like to confirm Japan's opposition to the European Union's lifting of the arms embargo on China," Abe told Rasmussen, a fellow ally of US President George W. Bush.

France has been the main supporter of lifting the arms embargo, which was imposed after China's bloody crushing of the 1989 Tiananmen Square democracy protests.

China on Sunday defended its military build-up as needed to ensure "territorial integrity," a veiled reference to Taiwan.

The Japanese and Danish leaders also supported each other's positions on Iraq.

Other than Britain, Denmark is the only Western European countries which still has troops in Iraq. Rasmussen has come under pressure from the opposition to pull out Denmark's 470 soldiers before their mandate ends in June.

Rasmussen reiterated to Abe his view that foreign troops were needed.

"Until Iraq is able to be governed by its own citizens, foreign troops should remain in Iraq," Rasmussen told Abe, as quoted by the Japanese official.

Abe's predecessor Junichiro Koizumi sent troops to Iraq -- the first time since World War II that Japan has deployed to a country where fighting was underway. He withdrew the troops before leaving office.

Abe, who was a close aide to Koizumi, rose to prominence campaigning against North Korea, which last month tested a nuclear bomb for the first time.

Rasmussen welcomed North Korea's decision to return to six-nation talks, which include Japan, on ending its nuclear program.

"The attitude the international community should take is to increase political pressure via the six-party talks," Rasmussen was quoted as telling Abe.

Rasmussen also met with Emperor Akihito and Empress Michiko on his visit to Japan. He heads Thursday to neighboring South Korea.

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