A dispute between China and Japan -- over a group of uninhabited islands in the East China Sea --escalated this month, and raised fears of an armed confrontation.

On Tuesday, China welcomed a Japanese envoy for talks as both sides took steps to cool tensions.

Col. Douglas Macgregor (U.S. Army, retired) discussed that and other top defense issues on Capital Insider.

Note: This interview erroneously includes footage of the Dokdo and Takeshima islands -- the source of a different dispute between Japan and South Korea. Capital Insider regrets the error.