And just to add to Ray sir's reply is following news article..........................
China retracts policy on S. China Sea, tells U.S.
WASHINGTON (Kyodo) -- The Chinese government has effectively backed away from a new state policy which it had conveyed to the United States and considers the South China Sea as part of its "core interests" that concern China's sovereignty and territorial integrity, sources close to the matter said Friday.
Beijing informed Washington in March that it sees the South China Sea as a core interest, along with Taiwan and Tibet. But in recent meetings, Chinese officials have been refuting such claims, the sources said.
The apparent change in China's policy comes in the wake of growing wariness among Southeast Asian nations, as well as other players such as the United States, about China's arrogance amid its increasing military presence in the South China Sea.
China's "core interest" policy has drawn protests from the United States and member nations of the Association of Southeast Asian Nations, some that have territorial disputes with Beijing in the South China Sea.
The sources said, though, that China may no longer use the term "core interest," but it remains unclear if China will ease its hard-line stance on protecting its maritime interests, which also includes the East China Sea.
The East China Sea is where the Senkaku Islands is located and a source of friction between Japan and China over maritime interests in the waters. The Senkaku Islands are controlled by Japan but claimed by China.
According to the sources, China first informed the United States about this policy when U.S. Deputy Secretary of State Jim Steinberg and his delegation visited China in March.
In May, Chinese State Councilor Dai Bingguo officially conveyed China's stance to U.S. Secretary of State Hillary Clinton during the countries' strategic and economic dialogue in Beijing, the sources said.
But the Chinese officials have told U.S. officials lately that they did not say the South China Sea was a "core interest," the sources said. During their Oct. 11 meeting in Hanoi, Chinese Defense Minister Liang Guanglie did not even mention the matter to U.S. Defense Secretary Robert Gates.
A senior Pentagon official said China's move to back down from its earlier strategy on the South China Sea was likely influenced by discussions within China.
Beijing's shift in its policy is believed to be out of consideration to the United States, with some Chinese officials arguing that a continued hard-line stance on China's part will limit the flexibility of the emerging economy's diplomatic strategies.
In an apparent move to contain China's growing assertiveness, Clinton in July said the United States has a national interest in freedom of navigation in the South China Sea.
