Japan will continue to monitor the impact of China's excess production capacity on its real economy, Finance Minister Shunichi Suzuki said on Friday.

There are concerns that China's excess capacity could export deflationary pressure, Suzuki told a regular press conference after a cabinet meeting.

"We'll need to monitor how that will impact our real economy," he added. (Reporting by Makiko Yamazaki; Editing by Clarence Fernandez)