Although tensions still simmer, last week Japanese Prime Minister Shinzo Abe and Chinese President Xi Jinping met briefly on the side of the Group of 20 summit in Russia, raising hopes for dialogue.
"We hope that quiet diplomat engagement between Japan and China bears fruit," Russel said. "And we note with interest that Prime Minister Abe and President Xi Jinping had some form of encounter or conversation in St. Petersburg."
Russel said the U.S. takes no position on the issue of territorial claims but that it is in the U.S. interest that peace and stability in the region be maintained.
"We are not neutral on matters of responsible behaviors at sea," he said. "It is of great concern to the United States as it is to all countries that rely on maritime corridors that there is any risk of an incident that could lead to a crisis or lead to an escalation."