WASHINGTON, July 2 (Reuters) - The U.S. Defense Department
expressed concern on Thursday about China holding military
exercises in the South China Sea, saying the move will further
destabilize the situation in the disputed waters.
"Conducting military exercises over disputed territory in
the South China Sea is counterproductive to efforts at easing
tensions and maintaining stability," the department said in a
statement.
China announced last week it had scheduled five days of
drills starting July 1 near the Paracel Islands, which are
claimed by both Vietnam and China.
"The military exercises are the latest in a long string of
PRC actions to assert unlawful maritime claims and disadvantage
its Southeast Asian neighbors in the South China Sea," the
statement said, referring to the People's Republic of China.
The United States accuses China of militarizing the South
China Sea and trying to intimidate Asian neighbors who might
want to exploit its extensive oil and gas reserves.
China claims 90% of the potentially energy-rich South China
Sea, but Brunei, Malaysia, the Philippines, Taiwan and Vietnam
also lay claim to parts of it, through which about $3 trillion
of trade passes each year.