iii. On the ways and means of dispute settlement

129. Based on an in-depth understanding of international practice and its own rich practice, China firmly believes that no matter what mechanism or means is chosen for settling disputes between any countries, the consent of states concerned should be the basis of that choice, and the will of sovereign states should not be violated.

130. On issues concerning territory and maritime delimitation, China does not accept any means of dispute settlement imposed on it, nor does it accept any recourse to third-party settlement. On 25 August 2006, China deposited, pursuant to Article 298 of UNCLOS, with the Secretary-General of the United Nations a declaration, stating that, "The Government of the People's Republic of China does not accept any of the procedures provided for in Section 2 of Part XV of the Convention with respect to all the categories of disputes referred to in paragraph 1 (a), (b) and (c) of Article 298 of the Convention". This explicitly excludes from UNCLOS compulsory dispute settlement procedures disputes concerning maritime delimitation, historic bays or titles, military and law enforcement activities, and disputes in respect of which the Security Council of the United Nations is exercising the functions assigned to it by the Charter of the United Nations.

131. Since its founding, the People's Republic of China has signed boundary treaties with 12 of its 14 land neighbors through bilateral negotiations and consultations in a spirit of equality and mutual understanding, and about 90% of China's land boundaries have been delimited and demarcated. China and Vietnam have delimited through negotiations the boundary between their territorial seas, exclusive economic zones and continental shelves in the Beibu Bay. China's sincerity in settling disputes through negotiation and its unremitting efforts made in this respect are known to all. It is self-evident that negotiation directly reflects the will of states. The parties directly participate in the formulation of the result. Practice demonstrates that a negotiated outcome will better gain the understanding and support of the people of countries concerned, will be effectively implemented and will be durable. Only when an agreement is reached by parties concerned through negotiation on an equal footing can a dispute be settled once and for all, and this will ensure the full and effective implementation of the agreement.

iv. On managing differences and engaging in practical maritime cooperation in the South China Sea

132. In keeping with international law and practice, pending final settlement of maritime disputes, the states concerned should exercise restraint and make every effort to enter into provisional arrangements of a practical nature, including establishing and improving dispute management rules and mechanisms, engaging in cooperation in various sectors, and promoting joint development while shelving differences, so as to uphold peace and stability in the South China Sea region and create conditions for the final settlement of disputes. Relevant cooperation and joint development are without prejudice to the final delimitation.

133. China works actively to promote the establishment of bilateral maritime consultation mechanisms with relevant states, explores joint development in areas such as fishery, oil and gas, and champions the active exploration by relevant countries in establishing a cooperation mechanism among the South China Sea coastal states in accordance with relevant provisions of UNCLOS.

134. China is always dedicated to working with ASEAN Member States to fully and effectively implement the DOC and actively promote practical maritime cooperation. Together the Parties have already achieved "Early Harvest Measures", including the "Hotline Platform on Search and Rescue among China and ASEAN Member States", the "Senior Officials' Hotline Platform in Response to Maritime Emergencies among Ministries of Foreign Affairs of China and ASEAN Member States", as well as the "Table-top Exercise of Search and Rescue among China and ASEAN Member States".

135. China consistently maintains that the Parties should push forward consultations on a "Code of Conduct" (COC) under the framework of full and effective implementation of the DOC, with a view to achieving an early conclusion on the basis of consensus. In order to properly manage risks at sea, pending the final conclusion of a COC, China proposed the adoption of "Preventive Measures to Manage Risks at Sea". This proposal has been unanimously accepted by all ASEAN Member States.