US Army Chief of Staff Ray Odierno on Saturday said Beijing and Tokyo must enhance communication to avoid "miscalculations" amid a simmering territorial dispute over islands in the East China Sea. Odierno, a four star general, spoke during a visit to China, where he has held talks with military officials aimed at establishing a formal high-level dialogue between the US and Chinese armies in the coming months. "We reinforced the importance of dialogue and discussion between the Japanese and the Chinese regarding this issue," Odierno told reporters. "We have to be careful and ensure that there are no miscalculations along the way." Tensions between the two nations dramatically intensified after Japan "nationalized" Diaoyu Islands in September 2012, with ships and aircraft from both countries regularly patrolling waters around the contested territory. "We do have a treaty with Japan, a defense treaty, but the most important piece is that we in fact emphasize the importance of this continued dialogue to solve this problem," Odierno said. Dialogue between China and Japan, however, has come to a virtual standstill as the island dispute has intensified. China's President Xi Jinping and Japanese Prime Minister Shinzo Abe have never held a formal bilateral summit, only short encounters at global and regional meetings. "For me, we had frank, honest, important discussions about security, stability in the Asia-Pacific region" as well as beyond, Odierno said of the discussions in Beijing. But Odierno emphasized the talks centered on establishing "army-to-army dialogue" and were spurred by meetings held between Xi and President Barack Obama last year. The comments come as a source said Sunday that Japan has drafted new guidelines that would reverse a decades-old ban on weapons exports, a move by Abe's government that could further strain ties with China and South Korea. The Japanese government is aiming to bolster the self-reliance of the military. Under the new guidelines, arms exports would be approved upon "rigorous review" if they were to serve peaceful missions or if joint development of a weapon was deemed to enhance national security, the source told Reuters.