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Daniel Russel, chief of the Bureau of East Asia and Pacific Affairs, denounced China's moves "occupying uninhabited land features" as going "far beyond what a reasonable person would consider with the maintenance of the status quo."

"The status quo as applied in 2002 when the ten ASEAN countries and China reached an agreement on a Declaration of Conduct that clearly and explicitly committed themselves to exercise restraint, to avoid occupying uninhabited land features, and—to paraphrase—to keep things as they were," Russel said in a phone conference with journalists in Burma on Tuesday.

He said that China's behavior does not contribute to negotiations for a code of conduct that will effectively bind rival claimant states in the strategic waterway.

Russel also reiterated Defense Secretary Chuck Hagel's warning against coercion and use of force in the maritime areas as "unacceptable."

Countries embroiled in the sea row may choose diplomatic or legal means to settle outstanding issues instead, he urged

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