CHINA CONSOLIDATES CONTROL AND ADVANCES INFLUENCE.

Chinese officials showed confidence and satisfaction that the cooling tensions in the South China Sea demonstrated increasing regional deference to Beijing's interests while China's economic importance to Southeast Asia loomed larger in a period of anticipated international retrenchment. They remained alert to possible actions by the United States, Japan, Australia and South China Sea claimant states that might upset the recent positive trajectory, but generally saw those states preoccupied or otherwise unwilling to push back strongly against Chinese ambitions. The way seemed open for steady consolidation and control of holdings and claimed rights along with a Chinese supported code of conduct on maritime activity in the South China Sea, diplomatic initiatives to promote closer ties and reduce regional suspicion of Chinese intentions, and an array of economic blandishments in line with Beijing's ambitious Silk Road programs. [ABSTRACT FROM AUTHOR]