( CNN ) -- China reassured its neighbors Sunday that it will maintain `` peace and stability '' in the turbulent South China Sea , a day after the U.S. renewed concerns over territorial disputes . Defense Minister Gen. Liang Guanglie said China was keeping its agreements to the peaceful resolution of territorial disputes . However , Liang underscored the `` freedom of navigation and overflight '' in the South China Sea . Chinese military has been accused of harassment in the waters recently . The area rich in oil deposits is rife with territorial disputes with claims by China , the Philippines , Vietnam , Malaysia , Brunei and Taiwan . It 's considered to be one of Asia 's more dangerous potential flashpoints . Liang said China is no threat to world peace , noting its military policy is purely defensive . `` To judge whether a country is a threat to world peace , '' he said , `` the key is not to look at how strong its economy or military is , but the policy it pursues . '' He sought to relieve concerns about China 's modernization of its powerful military , saying `` no matter how developed it may be , China will never seek hegemony or military expansion . '' Vietnamese defense minister , Gen. Phung Quang Thanh , reiterated calls for the conclusion of a code of conduct between the regional organization ASEAN and China to help restrain disputes in the South China Sea . In his speech , Thanh recounted a May 26 incident when surveying cables of a Vietnamese oil exploration vessel were cut . Vietnam has handled the incident with `` patience , '' he said , adding that they `` expect no repetition of similar incidents . '' Philippine President Benigno Aquino said last month that the disputes in the South China Sea could spur a regional arms race . The Philippines accused China of intimidation in disputed oil-rich Spratly islands in the South China Sea , where its oil exploration ship was confronted by Chinese ships in March . The U.S has expressed concern about the potential for clashes in the region . In 2010 , China was angered when Secretary of State Hillary Clinton called for peaceful resolution of the competing claims , saying it was in the U.S. `` national interest . '' U.S. Defense Secretary Robert Gates on Saturday warned that clashes could occur in the sea if nations do not agree on ways to deal with disputes .
Defense minister says China is keeping its agreements to a peaceful resolution . Chinese military has been accused of harassment in the South China Sea . The area rich in oil deposits is rife with territorial disputes .