China's military carried out war games in the disputed South China Sea this week, with warships, submarines and fighter jets simulating cruise missile strikes on ships, the official People's Liberation Army Daily said on Friday.
China claims almost all of the energy-rich waters of the South China Sea, through which more than $5 trillion of maritime trade passes each year. The Philippines, Brunei, Vietnam, Malaysia and Taiwan have overlapping claims.
The U.S. Pacific Fleet Commander on Monday warned of a possible arms race in the disputed South China Sea that could engulf the region as nations become increasingly tempted to use military force to settle territorial spats.