The U.S. Pentagon's latest annual report on China's military overlooked its peaceful defense policy, the official media said Thursday. Pentagon official Michael Schiffer, in a media briefing on the Pentagon report, noted China's expanding military capabilities have allowed it contribute to activities such as international peacekeeping and fighting piracy, but its military capabilities are potentially destabilizing to regional military balances and increase the risk of misunderstanding and miscalculation. Xinhua, China's official news agency, said the Pentagon report welcomed Beijing's contribution to international safety and security while "still overlooking the country's peaceful defense policy." Xinhua said China has repeatedly stated the defensive nature of the country's national defense policy and that a white paper issued in March was designed to enhance its military's transparency. On the Pentagon's comment regarding its aircraft carrier, Xinhua said China is the last to possess such a vessel among the five permanent members of the United Nations Security Council. "The 94-page report, as usual, interferes with the internal issue of China by making willful comments on the situation across Taiwan Straits," Xinhua said. Xinhua said the past year has seen an improved military-to-military relationship between China and the United States.