http://www.bbc.co.uk/news/world-asia-18045383
12 May 2012 Last updated at 12:39 GMT   
China denies preparing war over South China Sea shoal
China has denied reports  its military forces are preparing for war amid tensions over a disputed  territory in the South China Sea. The defence ministry statement comes despite warnings to the  Philippines that military conflict is possible over a reef known as the  Scarborough Shoal. 
         Ships from China and the Philippines have been confronting each other for more than a month over the shoal. Both sides accuse the other of intruding into territorial waters.
         "Reports that the Guangzhou military region, the South China  Sea fleet and other units have entered a state of war preparedness are  untrue," the ministry said in a brief statement on its website late on  Friday.
         Fears of an armed clash escalated when the Chinese army's own  newspaper warned the military should not be treated as a paper tiger,  says BBC Asia analyst Charles Scanlon. That led to excited rumours on Chinese internet sites that  the navy was  preparing for action and that the Guangzhou military  command in the south of the country was on a war footing, our analyst  says. 
         The defence ministry has officially denied those reports -   but hardline elements in the leadership appear to be losing patience  with the defiant approach of a much smaller neighbour.     Analysts say the central government may see an opportunity to deflect attention from its internal problems. 
But its intentions are far from clear - and  the competing interests of maritime agencies and the military mean its  next step is hard to predict, our analyst adds. 
   Protests. On Friday, several hundred protesters demonstrated at the  Chinese embassy in Manila, calling for China to withdraw its ships from  the shoal. The row began early last month when the Philippines said its  naval ship had found eight Chinese fishing vessels at the shoal, which  is claimed by both sides.A number of Chinese and Philippine fishery and coastguard  ships remain stationed at the shoal, with both sides refusing to  withdraw. 
         The shoal itself, called Huangyan Island by China, is a  series of rocks and reefs more than 100 miles (160km) from the  Philippines and 500 miles from China. China claims sovereignty over a large U-shaped area of the  South China Sea, bringing it into dispute with several neighbouring  countries. In recent months, it has grown more assertive over the issue.  Manila has asked China to settle the issue at the International Tribunal on the Law of the Sea (ITLOS).
         On Saturday, Australian Foreign Minister Bob Carr - speaking  at the start of a visit to China - called on countries in the region to  settle their claims through international law. 
"We don't take a side on the various claims over the South China Sea," he said. 
"But we do, given our interest in the South China Sea, given  the fact that a large proportion of our trade travels through it, ...  call on governments to clarify and pursue those claims and accompanying  maritime rights in accordance with international law including the UN  Law of the Sea Convention."