South China Sea arbitration to set 'serious, wrong and bad example': Chinese ambassador

If this arbitration goes through, it "is against the spirit of UNCLOS," and will "set a serious, wrong and bad example," said Liu, adding that British and Dutch experts on the Law of the Sea shared the same concern with Chinese legal experts.

"Some people try to label China as not respecting international law if we reject this arbitration. But that is totally wrong. What China is doing is exactly safeguarding the authority and seriousness of international law, safeguarding the letter and spirit of UNCLOS," he told Reuters.

No matter what decision this tribunal is going to make, "it has no impact on China and China's sovereignty over these islands and reefs will not be bound by it," Liu argued.

"We will not fight in the court, but we will certainly fight for our sovereignty," he stressed.

Citing China's record in resolving territorial disputes with its neighbors, Liu reiterated that the door remains open for the Philippines to return to bilateral negotiations with China.

"The Philippines, they can put forward their proposals. And we can have our proposals and we'll meet half way. Any negotiation is a process of compromise."

"Now they have elected a new government. We do hope that they will change their course, return to the negotiation table," said the diplomat.

In the interview, Liu also slammed the US "rebalancing in the Asia Pacific," voicing suspicion over American motives.

"I think the American move in the Asia Pacific emboldened those countries to change the traditional channel of negotiation with China," making them believe in "a better deal with China" via US help, he said.

Describing US "freedom of navigation" claims as a false argument, the ambassador said the situation in the South China Sea is calm and peaceful with no reason for military involvement from an outside power at all.

"What they are doing is not for safeguarding free navigation," Liu said. "They are there to challenge China's sovereignty over the islands and reefs. And they make a dangerous provocation. China has a legitimate right to check what they are doing."