BEIJING, Sept 12 (Reuters) - China and Malaysia have agreed to set up a joint dialogue mechanism for the disputed South China Sea, the Chinese government's top diplomat said on Thursday after meeting Malaysia's foreign minister.
Recent Chinese naval deployments in the strategic waterway, through which more than US$3.4 trillion worth of goods are transported annually, have reignited tension with Vietnam and the Philippines. Malaysia, Brunei and Taiwan also have competing claims in the South China Sea.
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