At a news conference on the Indonesian island of Bali, Panetta said he appreciated what he characterized as a mild Chinese response to the arms deal. China in the past has reacted sharply to US arms sales to Taiwan.

China regards Taiwan as part of its territory and threatens to invade should the island ever make a declaration to formalize its de facto independence. China views US military support for Taiwan as a violation of Chinese sovereignty.

Panetta is in Indonesia for talks with Southeast Asian leaders.