Rig is drilling in our waters, Beijing says

A giant rig owned by China's top offshore oil producer is operating within the country's territorial waters, Beijing said on Wednesday.

China stated its position as it reaffirmed its resolve to protect territorial sovereignty amid continued maritime challenges from Vietnam.

Specialists said tensions may escalate, with China within its legal rights to operate the rig, and Vietnam feeling emboldened by Washington's military pivot and US President Barack Obama's recent Asian visit.