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Li reaffirmed China's objection to the South China Sea arbitration, citing China's right under United Nations Convention on the Law of the Sea (UNCLOS) to settle disputes primarily through dialogue and consultation.

"The signing of MoU shows a three-way win situation," said Hailey, adding that British, Chinese and Kenyan companies are working together to bring prosperity to the country and its people.

The Chinese side stands ready to work with ASEAN to hold a successful summit and take the 25th anniversary of dialogue relations as an opportunity to build a closer China-ASEAN community of common destiny, Hua said.

Merkel urged the international community to properly deal with the fallout of British exit from the EU and to work together in fight against terrorism.

Although the move does not necessarily lead to a final resumption of the project, it is a positive signal that the new leadership in Naypyidaw is handling its relations with Beijing in a prudent and pragmatic manner, analysts said.