The annual round of consultations was a sign that the two powers are eager to maintain open channels of communication and steady relations, according to Ma Xiaotian, deputy chief of the People's Liberation Army (PLA) general staff.

"The fact that the consultations took place as scheduled shows that both countries are being sincere about maintaining military exchanges," Ma said.

"Hopefully, both sides will make the best of this opportunity to expand common ground, keep risks under control and avoid misjudgment," he added.

Representing the United States, Defense Undersecretary Michele Flournoy said next year would be "very significant" for relations. She said it was "very important to cooperate on a number of issues that impact both of our countries," in an apparent allusion to the looming political leadership transition in China and the US presidential election.

Hu: 'Preparations for warfare'

The talks, however, come a day after Chinese President Hu Jintao urged his country's naval forces to "make extended preparations for warfare in order to make greater contributions to safeguarding national security and world peace." Hu made the unusually blunt comments during a meeting in Beijing with deputies of the party congress of the Chinese Navy.

Last week, China criticized Washington's plans to reassert its role as a Pacific power. The PLA denounced the US move to upgrade military ties with Australia as a figment of "Cold War thinking," warning that it could erode trust and fuel antagonism.

For its part, the United States has said that China has the right to develop its own military capabilities, but should do so transparently, as Washington has done.

Beijing fears encirclement, while others fear Beijing

US President Barack Obama's recent diplomatic pivot into the Asia-Pacific region was warmly welcomed by a slew of Asian countries who feel uneasy about China's rising economic and military might. But it has prompted speculation in Beijing that the move was part of a broader policy to encircle China.

America's huge naval operations and firepower combined with its geopolitical alliances in the region have been aimed at containing China. Hemmed in by an arc of powerful rivals in South Korea, Japan and Taiwan, China suffers from severely limited access to the oceans that surround it.

This has repeatedly led to tensions over resource-rich island territories in the East China and South China Seas, including claims to the disputed Spratly Islands by Vietnam and the Philippines, which the US supports.

Recent talk of a possible US defense pact with India and Australia has also fanned Chinese concerns. An arms deal with Taiwan, which China views as a renegade province, is another irritant for the Beijing leadership.

President Hu has made clear that he wants to avoid reopening rifts that dented ties with Washington earlier this year, but for their routine bilateral defense talks there has been no dearth of contentious issues.

Author: Gregg Benzow (AP, AFP, Reuters)
Editor: Sarah Berning