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Chinese Minister of National Defense Liang Guanglie has met with visiting US Defense Secretary Leon Panetta in Beijing. Liang says the two sides have reached major agreement on a number of issues, and aim to build a "new type of military relationship", based on win-win cooperation. Panetta says a stable and constructive US-China military relationship is key to regional peace and stability.

The highest military protocol, to welcome his US counterpart.

US Defense Secretary Leon Panetta is welcomed by Chinese Minister of National Defence Liang Guanglie. It's the second time they've met this year. The high-level visit is seen as a sign of more stable relations between the two militaries.

Chinese Defense Minister Liang Guanglie (R) hosts a welcoming ceremony for U.S. Secretary of Defense Leon Panetta in Beijing, capital of China, Sept. 18, 2012. Liang Guanglie held talks with Leon Panetta in Beijing on Tuesday. [Xinhua]

Panetta's visit was arranged to follow General Liang's trip to the US in May. It's part of continued efforts to improve the military ties between the two sides. It also aims to expand trust and understanding, amid China's military modernization.

Liang says, "We believe that within the larger picture of the China-US cooperative partnership, the two militaries need to forge a new type of relationship, which is based on equality, mutual benefits, and win-win cooperation."

Liang Guanglie and Leon Panetta discussed defense strategy and regional security. Both sides spoke about common interests, despite a number of differences. Both expressed the importance of deepening military ties, and keeping communication channels open.

Panetta says, "We will not achieve security and prosperity in the 21st century, without a constructive United States and China relations, including a stronger military to military relationship."

Despite the positive tones, the United States has stepped up its military deployments, conducted frequent military exercises, and accelerated the deployment of regional defense missile systems in the Asia-Pacific.

Panetta also says, "Our position is not contradictory at all. Our purpose is being able to strengthen our presence in this region, is to promote greater prosperity and security in the region."

Panetta's visit comes amid the escalating row over territorial rights between China and Japan over the Diaoyu Islands. In response to the Japanese government's provocative purchase of the disputed islands, the Chinese army has held live-fire drills to show its determination to protect its sovereignty. The Chinese military head made clear the country's position over its territorial claims.

Liang says, "We will continue to follow very closely the involvement of the situation, and reserve the right of further action. Of course, we still hope for a peaceful and negotiated solution to this issue, and we hope to work together and work well with the Japanese government in handling the dispute."

Many Chinese experts believe that Washington's announcement of shifting the focus of its foreign policy towards the Asia-Pacific Region, has to some degree, stirred the waters in the region.

With US elections in November and China's upcoming Party Congress, neither wants a real conflict. A good relationship is crucial to both, as well as to stability in this region.

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