After two days of tense meetings on the dispute in the Philippine capital, foreign ministers from the 10-member Association of Southeast Asian Nations (ASEAN) issued a joint communique that diplomats involved said was carefully worded to avoid angering China.
The release of the statement came shortly after the ministers met with Chinese Foreign Minister Wang Yi and agreed on a framework for conducting negotiations on the decades-long row that included key clauses advocated by China.
China claims nearly all of the strategically vital sea, through which USD 5 trillion in annual shipping trade passes and is believed to sit atop vast oil and gas deposits.
Its sweeping claims overlap with those of ASEAN members Vietnam, the Philippines, Malaysia and Brunei, as well as Taiwan.
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China has dramatically expanded its presence in the contested areas in recent years by building giant artificial islands that could be used as military bases, raising concerns it will eventually establish de facto control over the waters.
Vietnam, the most determined critic of China on the issue, had insisted during two days of negotiations that ASEAN insist the code be legally binding, arguing otherwise it would be meaningless.
The ASEAN ministers failed to release the joint statement as expected after meeting yesterday because of their differences on the sea issue, with Vietnam pushing for tougher language and Cambodia lobbying hard for China.
"Vietnam is adamant, and China is effectively using Cambodia to champion its interests," one diplomat told AFP on Sunday as negotiations extended into overtime.
Critics of China have accused it of trying to divide ASEAN with strong-armed tactics and chequebook diplomacy, enticing smaller countries in the bloc such as Cambodia and Laos to support it.
The Philippines, under previous president Benigno Aquino, had been one of the most vocal critics of China and filed a case before a UN-backed tribunal.
The tribunal last year ruled China's sweeping claims to the sea had no legal basis. But China, despite being a signatory to the UN's Convention on the Law of the Sea, ignored the ruling.
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