Tokyo ? Japan said Thursday it was freezing its loans to China through the end of this month because of worsening relations between the two nations who have increasingly become economic rivals.

The move came amid mounting criticism in Japan that China’s booming economy no longer needs the handouts. The two also are squabbling over natural resources and the bitter legacy of World War II.

Chief Cabinet Secretary Shinzo Abe said Japan won’t give any more of the loans to China during the current fiscal year, which ends March 31. He said the government may release the loans again next month if the situation improves.