"We hope to mutually work towards building a constructive and stable relationship," Iwaya said in his first press conference after being nominated by Prime Minister Shigeru Ishiba on Tuesday.
The minister said he hoped to meet his Chinese counterpart Wang Yi "as soon as possible" for "frank exchanges and dialogue", but a date had not yet been decided.
Relations between the neighbours have worsened as China builds up its military presence around disputed territories, and as Japan boosts security ties with the United States and its allies.
"Between Japan and China, there are many outstanding issues and challenges, but at the same time there is much possibility and potential," Iwaya said.
Both are "major countries holding an important responsibility jointly for achieving peace and prosperity for this region and the entire international community".
But also, "we seek China to behave responsibly", Iwaya added.
"We are seeing attempts to unilaterally change the status quo in the East Asia region, so we need to build a system that can firmly deter such attempts," he said.
On Wednesday, Chinese President Xi Jinping congratulated Ishiba, who was approved as prime minister by parliament on Tuesday after winning a ruling party leadership vote.
Echoing comments made by Ishiba earlier on Wednesday, Iwaya also expressed "deep concern" over missile attacks by Iran on Israel.
"We strongly condemn this kind of escalation, and... strongly urge all parties concerned to calm the situation."
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