"We will continue to work to ensure that disputes are resolved peacefully including in the South China Sea," Obama said in his opening remarks at a meeting with leaders of the 10-member Association of Southeast Asian Nations, or ASEAN.
He said an international arbitration ruling on July 12 against China was "binding" and "helped to clarify maritime rights in the region."
The US has repeatedly expressed concern over Beijing's actions in the resource-rich sea. Obama brought that up again.
Referring to the arbitration panel's ruling that invalidated China's claims, Obama said: "I realize this raises tensions but I also look forward to discussing how we can constructively move forward together to lower tensions and promote diplomacy and regional stability."
"Several Leaders remained seriously concerned over recent developments in the South China Sea ... We stressed the importance for the parties concerned to resolve their disputes by peaceful means, in accordance with universally recognized principles of international laws," it said.
China has turned shoals and coral reefs into seven man-made islands and built airstrips capable of handling military aircraft on three of them. ASEAN leaders at their earlier summit on Tuesday expressed concern over China's island-building.
The use of the phrase "some leaders" in the two statements underscores the fundamental problem ASEAN and the wider East Asia Summit has in dealing with China not all its members are willing to scold Beijing. Cambodia, for example, remains in China's camp, as does Laos to a large extent, preventing any robust statement from the consensus-bound ASEAN group.
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