Looking back on the year 2016， China has made important progress in safeguarding stability and promoting cooperation in the region， which has laid a solid foundation for the steady development of regional diplomacy in 2017.

In March 2016， the First Lancang-Mekong Cooperation (LMC) Leaders’ Meeting was held in Sanya， southern China’s Hainan Province. The meeting adopted the Sanya Declaration， affirming the shared vision of the six member countries that the LMC will contribute to the economic and social development of sub-regional countries， enhance the well-being of people living in the region， narrow the development gap among regional countries and support ASEAN Community building. The parties also pledged to promote the implementation of the UN 2030 Agenda for Sustainable Development and advance South-South cooperation.

The leaders’ meeting reaffirmed the consensus of the six countries in building the LMC into a new type of sub-regional cooperation mechanism. The LMC will be based on the principles of mutual consultation and coordination， common contribution and shared benefits. The parties agreed that LMC practical cooperation will be carried out through three cooperation pillars， namely political and security issues， economic and sustainable development and social， cultural and people-to-people exchanges. In addition， practical cooperation is to be carried out in five key priority areas – connectivity， production capacity， cross-border economic cooperation， water resources and agriculture and poverty reduction.

The Second LMC Foreign Ministers’ Meeting held at the end of 2016 in Siem Reap， Cambodia， reviewed and endorsed important documents， including the Matrix of Follow-ups to the Outcomes of the First LMC Leaders' Meeting and the General Principles for the Establishment of the Joint Working Groups on the LMC Key Priority Areas， to enhance mechanism building. The project-oriented model of the cooperation is a bright spot which has delivered tangible benefits to the people.

In July 2016， a ruling was handed down on “South China Sea arbitration”， with an attempt to completely deny and undermine China's territorial sovereignty and maritime rights and interests in the South China Sea. In the face of the political provocation， China responded. The Chinese Foreign Ministry released the Position Paper of the Government of the People' s Republic of China on the Matter of Jurisdiction in the South China Sea Arbitration Initiated by the Republic of the Philippines – the first time that China has interpreted its policy stance in the form of a government position paper. The paper explicitly pointed out that “the Arbitral Tribunal manifestly has no jurisdiction over the present arbitration”.

Meanwhile， China convinced others by reasoning with a solemn attitude on bilateral and multilateral occasions， building a circle of friends on the South China Sea. Eventually， China’s proper position was understood and supported by 120 countries and 240 political parties around the world.

China has pushed forward the restoration of its relations with the Philippines and guided the South China Sea dispute back to the path of dialogue and consultation. After Philippine President Rodrigo Duterte took office in 2016， he chose to visit China as his first state visit to a non-ASEAN country. China hosted the visit with goodwill and hospitality. Finally， the Philippines will not continue to play the part of a pioneer in challenging China’s sovereign rights and interests in the South China Sea.

Neighborhood diplomacy is one of the important pillars in China’s traditional overall diplomatic layout. The solution of the above-mentioned key issue has laid a foundation for the smooth development of China’s neighborhood diplomacy in 2017 and the steady upgrading of China-ASEAN relations. Therefore， in general， China’s neighborhood diplomacy will unfold in a steady manner in 2017. China will continue to strengthen its cooperation with all parties concerned to effectively address problems and challenges. Meanwhile， China’s peripheral situation will maintain overall stability， which is positive for regional development.