Tensions between US and China are building in the South China Sea, with the US Navy carrying out an operation to challenge Beijing’s efforts to control the waters and China announcing combat practice drills in the area.

Reuters reported that a US navy destroyer had carried out a “freedom of navigation” operation today, coming within 12 nautical miles of an artificial island built by China in the South China Sea.

The destroyer travelled close to Mischief Reef in the Spratly Islands and carried out manoeuvring operations there.

It is seen as US’ latest attempt to counter Beijing’s increasing attempts to control nautical movement in the hotly-contested waters.

Meanwhile, Xinhua reported that the Chinese navy will conduct military training under combat conditions in the South China Sea.

The navy staff department said today that the exercise was a routine part of the navy’s annual training plan for its troops.

It stressed that the exercise was “not aimed at any specific country or target”.

Suspected Chinese pressure

Vietnam also appeared to be bowing to pressure from China, after it cancelled a major oil deal in the South China Sea for the second time in a year.

The BBC reported today that state-backed PetroVietnam ordered Spanish energy company Repsol to suspend a project off its coast.

Repsol and its partners are estimated to have already spent US$200 million on the venture.

It had also reportedly contracted Malaysian-owned company Yinson to provide a Floating Production Storage and Offloading vessel at the site for 10 years for an estimated US$1 billion.

Repsol’s previous venture was also halted by the Vietnamese government in July last year after China reportedly threatened to attack Vietnamese outposts nearby.

The BBC said it was “likely” that the same dynamics were involved in the current decision.