Beijing pursues South China Sea agreement to improve trade relations

Chinese Premier Li Keqiang made a commitment on Tuesday to pursue a code of conduct in the territorially disputed South China Sea with its neighbours, after recent tensions with US Navy vessels in the region.

Li made the commitment in Singapore before attending the annual summit of the Association of Southeast Asian Nations (ASEAN) and said that such a move was crucial for China to improve trade and relations with its neighbours.

“As the development of the South China Sea has stabilised now, we hope to make use of this opportunity to push for concrete progress of the code. China and Asean countries will benefit in that process, it will also be conducive to free trade and go on to serve the interests of other parties,” said the Premier.

ASEAN and China agreed on a draft code that will lay the foundations for conduct in area in August and Beijing intends to have a full code of conduct drawn up in three years’ time.

Also in Singapore ahead of the ASEAN summit was US National Security Adviser John Bolton, who said that the US objected to unilateral steps taken by Chinese forces in the region.

Recent disputes between the US and China in the South China Sea have stemmed from Washington’s new arms sales to Taiwan, and a Chinese destroyer performed what the US Navy called what the US Navy called an “unsafe and unprofessional manoeuvre” close to the USS Decatur in late September.

US vessels have passed through the South China Sea with higher frequency than in recent years in order to highlight the right to freedom of movement in international waters, according to Washington.

In October, US Secretary of Defense James Mattis said: "The US will fly, sail, and operate wherever international law allows, and we encourage all nations to confidently exercise their right to do the same."