The leaders of Southeast Asian nations and Australia are expected to jointly denounce "the use of force" in regional disputes during talks that kicked off Monday in Melbourne, a collective swipe likely to irritate China.

Beijing's increasingly aggressive stance in the South China Sea was high on the agenda as leaders from the 10-nation ASEAN bloc began a "special summit" with their Australian counterparts.

"We strive for a region where sovereignty and territorial integrity is respected," a draft joint ASEAN-Australia statement obtained by AFP read.

"We strive for a region where differences are managed through respectful dialogue, not the threat or use of force," the statement added, without mentioning China by name.

Territorial disputes in the vital trade corridor have escalated in recent months, with China baring its teeth in areas also claimed by ASEAN members such as the Philippines and Vietnam.

Australia's Penny Wong, the host foreign minister, said nations must shoulder a joint responsibility to keep the region "peaceful, stable and prosperous".

"We face destabilising, provocative and coercive actions, including unsafe conduct at sea and in the air and militarisation of disputed features."

While the bloc's position on the South China Sea appeared to be largely settled, there was the prospect of tense discussions behind closed doors on sensitive matters such as the war in Gaza.

A draft joint declaration obtained by AFP indicated significant differences in opinion regarding the ongoing conflict -- which poses a tricky issue for the consensus-bound ASEAN forum.

Some 40 percent of the world's Muslim population calls Southeast Asia home, and forum heavyweights Indonesia and Malaysia are among the strongest supporters of the Palestinians on the international stage.

But other ASEAN nations such as Singapore have closer diplomatic and economic ties with Israel -- and are less eager to stoke controversy.

"I think the general consensus is calling for a ceasefire," Malaysian Prime Minister Anwar Ibrahim told reporters in Melbourne on Monday.

"Probably avoiding the contentious issues between Palestine and Israel, but at least for now (looking at) the ceasefire and humanitarian assistance."

The draft showed objections to suggested language on the "use of starvation" in the Gaza Strip and calls for a "durable" ceasefire.

The draft declaration also indicated that discussions about the deteriorating situation in Myanmar were similarly bogged down in disagreement and progressing with difficulty.

- 'China-phobia' -

The three-day summit is also expected to focus on economic cooperation, as countries such as the Philippines and Australia look to insulate their economy against retaliation from China.

Philippines Foreign Minister Enrique Manalo told AFP that economic resilience was a crucial part of ensuring security and sovereignty are upheld.

As part of that effort, he said the Philippines hopes to launch formal free trade agreement negotiations with the European Union "very soon".

The Philippines is focused on creating "greater economic security and economic resiliency, which in turn contributes to your own national security", Manalo said.

Other ASEAN members, however, have warned that China must play a role in the region's economic growth -- and that members should not be dragged into any dispute between Beijing and Washington.

"If they have problems with China, they should not impose it upon us," the Malaysian prime minister said.

"We do not have a problem with China. The China-phobia is in the West."

- Minerals boon -

Far more likely to generate consensus during the summit are issues of climate change and energy security.

Southeast Asia's hunger for energy is largely sated by fossil fuels, while Australia remains one of the world's biggest exporters of gas and polluting thermal coal.

Both are increasingly eager to pivot toward renewable energy, making the most of natural blessings, such as bulging deposits of critical minerals.

"ASEAN countries need more energy if they are going to continue developing their economies," said Rahman Yaacob, a regional analyst with Australia's Lowy Institute.

"Australia could be a source of that energy."

Indonesia and the Philippines are two of the world's largest producers of nickel, a key ingredient in the production of batteries for electric cars.

Another key battery metal, lithium, is found in vast quantities scattered throughout Australia.

Jakarta and Canberra have already started exploring how they could mesh these advantages to boost electric vehicle manufacturing.

Singapore's prime minister says a South China Sea code of conduct will take time

Southeast Asian countries’ quest to reach agreement with China on a code of conduct in the contested South China Sea will take time, with difficult issues yet to be resolved despite recent efforts to accelerate the process, Singapore’s prime minister said Tuesday at a regional summit.

China’s increasing military assertiveness in the busy waterway toward neighbors with competing territorial claims has been high on the agenda of the Association of Southeast Asian Nations summit. The three-day summit, which is being hosted in Melbourne to mark 50 years since Australia became ASEAN’s first external partner, ends Wednesday.

Leaders of the 10-nation bloc hope a code of conduct with China would be key to reducing the risk of naval confrontations.

Singapore Prime Minister Lee Hsien Loong said a first draft of the code had been written but negotiations are still required.

“The issues are not easy to resolve and, really, negotiating of a code of conduct inevitably raises issues of what the ultimate outcomes are going to be, and therefore, because the ultimate answers are difficult, so too negotiating the code will take quite some time,” Lee told reporters said.

In the latest dangerous incident, Chinese coast guard ships blocked Philippine vessels off a disputed South China Sea shoal on Tuesday, causing a minor collision, the Philippine coast guard said.

Philippine security officials have accused the Chinese coast guard and suspected militia ships of blocking Philippine vessels and using water cannons and a military-grade laser that temporarily blinded some Filipino crewmen in a series of high-seas hostilities last year.

Leaders agreed at an ASEAN summit in Indonesia last September to accelerate the negotiation process with a goal of finalizing a code within three years. That summit was joined by U.S. Vice President Kamala Harris, Chinese Prime Minister Li Qiang and Russian Foreign Minister Sergey Lavrov.

ASEAN expects the code will reflect international norms, principles and rules, refer to international law, and aim to achieve a “stable, safe and peaceful South China Sea,” according to documents released by Indonesia's Foreign Ministry.

Philippine President Ferdinand Marcos Jr. says the dispute's legal status was made clear by the Philippines’ victory over China in a 2016 arbitration ruling in The Hague, Netherlands, that invalidated Beijing’s vast territorial claims in the South China Sea. China did not accept the ruling.

“It is unfortunate that despite the clarity provided by international law, provocative, unilateral and illegal actions continue to infringe upon our sovereignty, our sovereign rights and jurisdictions,” Marcos said Monday.

Australia and the Philippines have urged regional neighbors to stand together more strongly in upholding the rule of law in the South China Sea, where China has constructed garrisons on several artificial islands to fortify its claims.

Malaysian Prime Minister Anwar Ibrahim, who has resisted pressure to take a side in the regional power struggle, said on Monday, “We do not have a problem with China.”

Nine ASEAN leaders and East Timorese Prime Minister Xanana Gusmão were officially welcomed to the summit on Tuesday with a traditional Indigenous smoking ceremony that involves burning leaves.

ASEAN has agreed in principle to admit East Timor and has granted it observer status. Myanmar, which is the 10th ASEAN nation, was denied political representation at the meeting over its failure to stem violence since a military junta seized control in 2021.

Gusmão told reporters on Tuesday he wanted to see ASEAN do more to restore peace and democracy in Myanmar.

Australia to Offer 10-Year Visa, Financing for Southeast Asia

Prime Minister Anthony Albanese will unveil longer business visas and a A$2 billion ($1.3 billion) financing facility as the centerpiece of a package to drive Australian trade and investment in Southeast Asia, deepening regional ties at a time of uncertainty over the US-China economic relationship.

Albanese will announce the measures in a speech to top executives at a special summit between Australia and the Association of Southeast Asian Nations in Melbourne on Tuesday, saying “Southeast Asia is where Australia’s future lies.”

“In 2022, our two-way trade with Asean member states passed A$178 billion — greater than our two-way trade with Japan or the US,” Albanese will say according to a text provided ahead of the address. “But we want to do more.”

Australia is hosting the leaders of all Asean nations, bar Myanmar, for a summit to commemorate 50 years of relations with the bloc. Albanese’s center-left Labor government has made a priority of improving economic and security links with Southeast Asia amid growing uncertainty in the region ranging from a more assertive China to the possible return of former US President Donald Trump.

Among the new measures are the A$2 billion Southeast Asia Investment Financing Facility, A$140 million over four years to build infrastructure financing partnerships, as well as investment “landing pads” to support Australian businesses in Vietnam and Indonesia.

In addition, Australia will extend its business validity visas from three years to five and extend the 10-year frequent traveler scheme to eligible Asean countries as well as Timor Leste.

Australia wants to deepen economic links with nations to its north as it tries to find a path between China, its biggest trading partner, and the US, its key security ally. This comes at a time when the US and China, the world’s two largest economies, are trying to unwind some of their connections forged over the past 25 years and create their own blocs.

Australia’s efforts to diversify its trading partners were highlighted in its new Southeast Asia economic strategy at the Asean summit in Jakarta in September.

“While there is so much untapped potential – there is not unlimited time,” Albanese will say. “We must act together – and we must act now.”

Among executives who will attend the speech are Commonwealth Bank of Australia’s Matt Comyn, Rio Tinto Australia’s Kellie Parker, BHP Australia’s Geraldine Slattery and Macquarie Group Ltd’s Shemara Wikramanayake.