US 'concerned' on China-Vietnam sea tensions

A US official voiced concern Wednesday about tensions between China and Vietnam over the resource-rich South China Sea and pledged to defend US oil companies operating in the region.

But State Department official Scot Marciel said the United States would not take sides on the myriad island disputes involving China and its neighbors including Japan, the Philippines and Vietnam.

Testifying before Congress, Marciel said that Beijing has told US and other foreign oil companies to halt work with Vietnamese partners in the South China Sea or face consequences in their business dealings in lucrative China.

…China, which has historic tensions with Vietnam, has administered the Paracel islands since 1974 when it overran a South Vietnamese outpost shortly before the end of the Vietnam War.

The islands — known as the Xisha by China — are considered strategic outposts with potentially vast oil and gas reserves, and rich fishing grounds.

AFP