"We're looking carefully into this matter," State Department deputy spokeswoman Jen Psaki told reporters yesterday.
"Given the recent history of tensions in the South China Sea, China's decision to operate its oil rig in disputed waters is provocative and unhelpful to the maintenance of peace and stability in the region."
Vietnam has labelled China's decision "illegal" and demanded the rig be withdrawn.
The China Maritime Safety Administration issued a unilateral navigational warning on its website saying the rig would be drilling in the South China Sea close to the Paracel Islands -- which are controlled by China but claimed by Vietnam.
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