China Says Sea Navigation ‘Not a Factor’ as Wen Talks With Obama in Bali

By Daniel Ten Kate - Nov 19, 2011 4:31 PM GMT+0700

China downplayed concern that tensions in the South China Sea could impede navigation in vital shipping lanes after U.S. President Barack Obama urged the rising naval power to adhere to a set of rules.

“China believes that freedom of navigation has not been a factor in the South China Sea because the South China Sea over the decades has been maintained as a very important route for international trade,” China’s Assistant Foreign Minister Liu Zhenmin told reporters today in Bali, Indonesia. “With the rapid development of economies in China and East Asian countries, the country and region attach more importance to freedom of navigation than anybody else.”

Liu reiterated that China believes territorial disputes in the area potentially rich in oil and gas reserves should be handled directly between concerned countries. China has proposed setting up a maritime cooperation fund with the 10-member Association of Southeast Asian nations to be worth 3 billion yuan ($472 million), Liu said.

Liu said Chinese Premier Wen Jiabao had “very cordial and frank” talks with Obama today and said the U.S. is a very important player in the region.

In a news conference in Canberra, Australia, on Nov. 16, Obama said that it is “mistaken” to say the U.S. fears China or is seeking to isolate the world’s most populous nation.

“The main message that I’ve said not only publicly but also privately to the Chinese is that with their rise comes increased responsibilities,” Obama said. “It’s important for them to play by the rules of the road.”

To contact the reporter on this story: Daniel Ten Kate in Bangkok at dtenkate@bloomberg.net

To contact the editor responsible for this story: Patrick Harrington at pharrington8@bloomberg.net