BEIJING, Sept. 18 (Xinhua) -- China's defense chief Liang Guanglie on Tuesday expressed the hope that the Diaoyu Islands issue with Japan will be peacefully resolved but he warned of "further actions."

After his talks with U.S. Defense Secretary Leon Panetta in Beijing, Liang told reporters, "We pay close attention to the development of the (Diaoyu Islands) issue and we reserve the right to take further actions, but we hope the issue will be properly resolved through peaceful ways and negotiations."

"I want to make it clear that the Diaoyu Islands are China's inherent territory, which is evidenced by history and law. Secretary Panetta and I discussed the issue in our talks," Liang said.

Liang said Japan is to be blamed for "heating up" the Diaoyu Islands issue as the Japanese government decided to "purchase" the islands.

The Chinese government and the people resolutely opposed the Diaoyu Islands "nationalization" plan by the Japanese government, which is completely illegal, Liang said.

Panetta arrived in Beijing Monday evening for his first visit to China as the Pentagon chief, after his two-day visit to Japan.