UPDATE 2-China rejects U.S. criticism of military drills in S.China Sea

(Adds comments from Philippines foreign minister in paragraph 6
and 7)
WASHINGTON/BEIJING, July 3 (Reuters) - China on Friday
rejected criticism by the U.S. Defense Department of its plan to
hold military exercises in the South China Sea, and suggested
that Washington was to blame for increased tensions in the
region.
The Pentagon said in a statement on Thursday that conducting
military exercises over disputed territory in the South China
Sea was "counter-productive to efforts at easing tensions and
maintaining stability".
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
Pentagon statement said, referring to the People's Republic of
China.
Vietnam and the Philippines have also criticized the planned
Chinese drills, warning it could create tension in the region
and impact Beijing's relationship with its neighbors.
Philippine Foreign Affairs Secretary Teodoro Locsin warned
China on Friday "it will be met with the severest response,
diplomatic and whatever else is appropriate" should the
exercises spill over to Philippine territory.
"To be sure, China is just as entitled, as any other power,
to invoke freedom of navigation in its military exercises. But
that freedom, it bears reminding, requires a straight and
uninterrupted voyage," Locsin said.
Chinese foreign ministry spokesman Zhao Lijian, asked about
the Pentagon's comments during a daily briefing in Beijing, said
the military exercises are within the scope of China's
sovereignty and said that certain "non-regional countries"
conducting military exercises in the South China Sea are
affecting the region's stability.
Zhao did not name any countries, but the United States has
conducted multiple freedom of navigation operations by sending
its warships through the area to assert the freedom of access to
international waterways.
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.