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China refused to be involved in the proceedings, citing a policy of resolving disputes on territorial sovereignty and maritime rights only through direct consultation and negotiation with the countries directly involved.

He expressed appreciation for PNG's efforts in boosting regional cooperation among Pacific Islands nations, saying China supports the country as the host of an APEC summit in 2018.

After China's World Trade Organization accession in 2001, cheap labor has fueled its export boom and powered the economy to become the world's second largest. But China's manufacturing sector is running into problems these days: squeezed from one end by markets with even lower labor costs, such as Vietnam and Malaysia, and yet struggling to move to a higher value chain because of intensified competition from developed nations.

At the ongoing ASEAN Foreign Ministers' Meeting, the 10-nation bloc is in the final spurt to realize the goal of establishing an "ASEAN Community," which involves a plan to create a common economic, political-security and sociocultural region by the end of this year.

He also said that people of ethnic minorities should preserve the best part of their traditional culture and encouraged to embrace modern civilization.