Negotiators from ASEAN and China have provisionally agreed on about 80 per cent of a draft code of conduct for the South China Sea, but failed to conclude the long-delayed accord during the Philippines' chairmanship of the bloc, Philippine Foreign Secretary Ma. Theresa Lazaro said at a press conference at the ASEAN summit in Manila.

Lazaro said several key issues remain unresolved, including whether the code will be legally binding, and that the ASEAN countries and China hold different views on how matters should proceed. Southeast Asian states want the code grounded in international law, which they accuse Beijing of disregarding as it asserts sovereignty over nearly all of the South China Sea. Beijing maintains its actions in the area have been lawful and professional.S2

The stakes are high because China's extensive maritime claims overlap with the exclusive economic zones of Brunei, Indonesia, Malaysia, the Philippines and Vietnam. An international arbitration tribunal ruled in 2016 that China's sweeping claims have no basis under international law, a decision Beijing rejects. Manila and Beijing have been locked in a series of maritime confrontations, with the Philippines accusing China of dangerous manoeuvres, water-cannoning and disrupting resupply missions, while China accuses the Philippines of intruding into what it claims as its territory.S2

Analysts say divisions within ASEAN itself, including over the geographical scope of the code, have also slowed talks. Collin Koh of Singapore's S. Rajaratnam School of International Studies said the remaining differences would be difficult to resolve and would require major concessions from the various parties.S1S2

Singapore will take over the effort to secure agreement when it assumes the ASEAN chairmanship next year, and the year-end deadline for the accord now rests on whether Beijing and regional claimants can find common ground on those key concessions.S1S2