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China, while firmly safeguarding her territorial sovereignty and maritime rights and interests, will continue to dedicate herself to resolving relevant disputes with relevant states directly concerned in accordance with international law and through negotiation and consultation on the basis of respecting historical facts, Lu said.

China aims to build its army with small, multi-functional and modular units, reorienting from theater defense to trans-theater mobility, the report says.

The bank also helps promote reform of global economic governance, he said.

O'hanlon said he had higher expectations for President Xi's state visit to the U.S. in September, during which the two countries might reach some agreement on the South China Sea rift to "really substantially scale back the tensions."

In his warm and inspiring remarks just now, Secretary-General Gurria looked back at a journey of 20 years since China and the OECD started the policy dialogue. For China, the world's biggest developing country with 1.3 billion people, development has always been of top priority throughout the 30-odd years of reform and opening-up. At the global level, problems like poverty and diseases have to be addressed while we are promoting prosperity and progress in civilization. And that, in the final analysis, has to be done through development. In a world of deeply integrated economies, solutions to these problems lie in international cooperation.