The Association of Southeast Asian Nations (ASEAN) had weighed whether to speak out on Tuesday's ruling by the Permanent Court of Arbitration in The Hague, said Southeast Asian diplomats with knowledge of the matter.
But 10-member ASEAN, whose unity has been increasingly strained in the face of Chinese expansionism, could not find common ground, they said.
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"Some ASEAN countries are definitely not happy. Beijing's action can be seen as interference in ASEAN's centrality," the source said.
Another senior Southeast Asian diplomat said China has "succeeded in splitting ASEAN through its allies on the South China Sea issue," referring to Laos and Cambodia.
Chinese pressure was blamed last month for a startling diplomatic U-turn by ASEAN, which swiftly disowned a joint statement released by Malaysia after an ASEAN-China meeting.
That statement had expressed alarm over Beijing's activities in the South China Sea. The fiasco highlighted the bloc's inability to maintain a united front on the issue.
China claims nearly all of the strategic sea — home to some of the world's most important shipping routes — and has steadily strengthened its toehold by converting reefs and sandbars into islands.
The Philippines brought an international arbitration case over China's growing assertiveness, resulting in this week's thorough repudiation of Beijing by the Hague tribunal, which said Chinese claims had no legal basis.
China has in turn rejected the ruling and reiterated its positions.
ASEAN members the Philippines, Vietnam, Malaysia and Brunei, as well as Taiwan, have competing claims to parts of the resource-rich sea.
While the Philippines and Vietnam have been particularly critical of China, Laos and Cambodia are generally regarded as preferring to side with their giant neighbour and benefactor.
Laos holds ASEAN's chair this year.
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