China's foreign minister has played down the prospects of a potential war with the US over the South China Sea during a visit to Australia.
The maritime tensions were among the hot button issues Wang Yi discussed with his Australian counterpart Julie Bishop during meetings in Canberra on Tuesday evening.
Tough talk from two key officials in the US Trump administration about blocking China's access to artificial islands had stoked fears of a US military action or even a naval blockade.
But Mr Wang insisted the US and China relationship had defied all kinds of difficulties in the past 40 years and emphasised diplomacy was the best way to resolve disputes.
"Any sober minded politician will recognise that there can not be conflict between China and the United States," Mr Wang told reporters in Canberra, through an interpreter.
"Both will lose and both sides cannot afford that."
He said it would take time for the new administration to acquaint itself with China.
China claims most of the South China Sea, while Taiwan, Malaysia, Vietnam, the Philippines and Brunei claim parts of the waters that command strategic sea lanes and have rich fishing grounds along with oil and gas deposits. The US is concerned about freedom of navigation in important trade routes.
Asked about the possibility of Australia being dragged into a war between its security ally the US and biggest trading partner China, Ms Bishop said Canberra would play a part in ensuring the rules based international order was adhered to.
"We believe it's in the interests of both the United States and China and all the countries in the region that there be a positive and constructive engagement," Ms Bishop told reporters.
Australia had welcomed the fast-tracked negotiations for a code of conduct between China and the Association of Southeast Asian Nations and urged all claimants to build trust, Ms Bishop said.
Mr Wang insisted the situation in the South China Sea is stable.
Beijing was committed to peaceful settlement based on dialogue and consultation.
China's Premier Li Keqiang is set to travel to Sydney for talks with Prime Minister Malcolm Turnbull in late March.
