Japan's incoming Prime Minister Naoto Kan is set to visit China on his first overseas trip, Japanese media reported on Sunday.

Kan also plans to name a top businessman as ambassador to China, "one of the highest posts for diplomats", reports said.

Commentators say the arrangements underscore the importance Kan attaches to China, as he has said Tokyo-Beijing ties would be "valued" during his administration.

Kan will visit Shanghai on Saturday to celebrate Japan Day at the ongoing World Expo there, the People's Daily reported from Tokyo, quoting local media.

The trip was actually arranged before former Japanese prime minister Yukio Hatoyama's sudden resignation last week.

Apart from stopping in Shanghai, Kan may also visit Beijing to meet with President Hu Jintao. But the Chinese Foreign Ministry could not be reached for confirmation. The Xinhua News Agency quoted sources as saying that China has got no official message yet from Japan on Kan's China visit.

On Thursday, Kan said the Japan-US relationship would remain the core of Tokyo's foreign policy but that ties with China would also be valued.

"I think that Japan's diplomacy is founded on Japan-US relations, (but) at the same time, Japan is in East Asia and we are seeing a historic development in Asia," Kan said. "Japan needs to go in the direction of building a trusting relationship with the US while placing particular importance on China. I think that is the correct way for Japan's future."

Besides visiting China on his first overseas trip, Kan is expected to officially appoint Uichiro Niwa, senior corporate adviser at trading house Itochu Corp., as the Chinese ambassador this summer, the Nikkei Daily reported.

Kan has long argued that private citizens should be tapped to serve as ambassadors, the Nikkei said. The appointment is expected to strengthen private-sector ties with China, one of the world's largest markets, the report said.

The decision also reflects the effort by Kan's ruling Democratic Party of Japan to wrest power from the hands of bureaucrats and redistribute it to politicians, the Nikkei said.