The two countries broke off military contacts after a Chinese fighter jet collided with a U.S. surveillance plane, killing the Chinese pilot and forcing the U.S. crew to land in China, where they were held for 11 days.

But Admiral William Fallon, Commander of the U.S. Pacific Command, has pushed to upgrade ties, visiting China in May and inviting Chinese officers to observe U.S. naval exercises in the Western Pacific.

In the latest exercises, near Pearl Harbor, U.S. and Chinese missile-equipped destroyers held five hours of communications and other drills on Sunday, Xinhua news agency said.

The exercises, visits to naval sites in Hawaii and barbecues with the U.S. navy "broadened communication and contact and increased understanding", the report said. The fleet then headed for San Diego.