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Another reason for China declined to attend the arbitration proceedings is that, in 2002, a Declaration on the Conduct of Parties in the South China Sea was agreed, promoting bilateral negotiation among the disputing nations over sovereignty issues, and calling for the freedom of navigation in the South China Sea for all nations of the world in accordance to UNCLOS.

CRRC Vice President Yu Weiping said the new plant will create jobs and tax revenue for local people and help improve infrastructure.

The new set of measures is an update on the country's document about encouraging support for small and micro businesses published in 2013.

"China and the ASEAN nations have agreed to build a closer community of common destiny," said Wang, adding that they have set six priority areas for the further development of China-ASEAN ties.

Xi made the remarks when meeting with Saudi Arabia's Deputy Crown Prince Mohammed bin Salman in Beijing.