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China has always maintained that the issue should be resolved via dialogue, said Li, adding that China will continue to maintain contact with all parties concerned and contribute to the peaceful settlement of the issue through political and diplomatic means.

"The first decade of the SCO can be considered as a start-up period, and in the second decade, the organization should mainly seek practical development," she said.

This sign of improved Sino-US military relations followed the return of Defense Minister Chang Wanquan from a visit to Washington last week.

Zhang Jiuhuan, former Chinese ambassador to Thailand, Singapore and Nepal, said, "Upgrading the free trade area is another significant step for the Chinese government to beef up China-ASEAN cooperation."

The news was soon spread by many other media.