Malaysia and China to Discuss Energy Projects and Territorial Disputes in South China Sea.

Malaysian Prime Minister Anwar Ibrahim has said that China has expressed concerns about energy activities by Malaysian state firm Petronas in the South China Sea, even though Kuala Lumpur believes the projects are in its territory. China claims sovereignty over almost the entire South China Sea, through which about $3 trillion worth of ship-borne trade passes annually. Petronas operates oil and gas fields within Malaysia's 200-mile exclusive economic zone (EEZ) and has in recent years had several encounters with Chinese vessels.