Obama insists China should drop South China Sea islands claim

Barack Obama has warned China that it should abandom claims over disputed islands in the South China sea, during a meeting of the Association of Southeast Asian Nations, or ASEAN.

At the summit in Laos, Obama mentioned the decision by the Hague which ruled against the claims of China over the islands in the area.

"The landmark arbitration ruling in July, which is binding, helped to clarify maritime rights in the region," Obama told the leaders.

"I recognise this raises tensions but I also look forward to discussing how we can constructively move forward together to lower tensions and promote diplomacy and stability. We will continue to work to ensure that disputes are resolved peacefully, including in the South China Sea."

Obama brought the issue back on the agenda after attempts by other leaders at the summit to sweep the issue under the carpet.

China responded to Obama's comments by referring to them as "untimely and inappropriate".

Beijing has come in for criticism in recent times for converting small islands in the region into areas capable of handling military aircraft.