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China rejected the proposal and has reacted angrily to U.S. declarations that resolution of such disputes is an American national security concern. The rejection prompted Clinton to renew the offer and restate the U.S. interest in ensuring freedom of navigation and maritime safety in the region. And she made clear that despite China's assurances on rare earth exports, the international community must diversify its sources for the material. China now supplies 97 percent of the world's rare earth production and continuing to depend on it would be a strategic mistake, Clinton said. In Cambodia, which is heavily dependent on Chinese investment and trade, Clinton warned against the dangers of over-reliance on any one nation or partner. That theme was also evident in Malaysia and in New Zealand, where she signed a declaration aimed at fully restoring military ties and bringing a final end to a lingering nuclear dispute that had dogged relations for 25 years. At her last stop in Melbourne, Australia, she and Defense Secretary Robert Gates, along with their Australian colleagues, agreed to step up military and defense cooperation with the clear goal of expanding the projection of U.S. power in the Asia-Pacific. In a joint statement, the two nations "affirmed the need for peaceful resolution of regional maritime territorial disputes, including in the South China Sea and the East China Sea. They supported negotiation of a more formal, binding code of conduct for the South China Sea."
[Associated
Press;
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