Malaysia has welcomed China's assurance to resolve territorial claims in the South China Sea through negotiations rather than force.

Prime Minister Datuk Seri Najib Tun Razak said China's commitment was very important and hoped that countries involved in territorial disputes to hold further negotiations.

"This is a positive affirmation, if we are committed in signing the code of conduct (CoC), then the use of force and threats of violence cannot be done as it is against the CoC declaration which will be decided later," he said.

He said Asean leaders wanted a commitment from all parties involved in the disputes and an assurance that the principles of the CoC declaration for the South China Sea to be observed.

Asked what would happen if China does not comply with the CoC, Najib said it would be in conflict with the CoC.

"It will be inconsistent with what was expressed today. They promised something positive, how Asean is important to them, and they want to enhance ties with Asean," he told Malaysian journalists covering the 23rd Asean Summit here today.

Earlier, Najib held a bilateral meeting with China Prime Minister Li Keqiang.

Najib said in fact, his proposal that the issue should be resolved through moderation and rejection of violence was welcomed by Li.

"The prime minister of China considers this a good proposal. In fact, countries and societies in the east have such philosophy - the Confucius philosophy and teaching akin to the moderation concept," he said.

China, Taiwan and four Asean countries, namely Brunei, Malaysia, the Philippines and Vietnam are involved in territorial disputes in the South China Sea.

In his speech at the 16th Asean-China Summit today, Li called on countries involved in territorial claims in the South China Sea to actively pursue joint development while awaiting dispute settlement.

Commenting on Li's proposal for joint development in disputed areas, Najib said it could be discussed with China.

Najib said China's commitment was clear when it proposed the possibility of entering into an agreement in the spirit of good neighbourliness, friendship and cooperation signed between China and Asean.

He said Asean leaders concurred that the region had so far reached an 80 per cent compliance rate towards realising the Asean Community and resolved to achieve the 100 per cent target by 2015.

"My counterparts and I also emphasised the need for a people-oriented association relevant to Asean to be worked out," he said.

Najib said the Asean Summit also wanted Asean connectivity physically and through infrastructure, including air links and broadband, to be enhanced to enable comprehensive and seamless growth to be made.

On the cancellation of a three-way meeting between Malaysia, Indonesia and Singapore scheduled for today, he said the leaders of the three countries briefly discussed pertinent issues on the sidelines.

"Singapore asked Malaysia and Indonesia's cooperation in the fight against haze. We will look into technical aspect of the problem," he added.