U.S. officials say China may be prepared for talks with its neighbors on a code of conduct for resolving territorial disputes in the South China Sea.

U.S. Secretary of State Hillary Clinton held in talks in Cambodia Thursday with Chinese Foreign Minister Yang Jiechi, who U.S. officials say cautiously signaled his country's willingness to take part in negotiations. The talks could begin as early as September.

Clinton and Yang met on the sidelines of the Association of Southeast Asian Nations (ASEAN) conference.

In remarks prepared for the ASEAN meeting, Clinton stressed the need for an agreement on “clear procedures for addressing disagreements.” She also encouraged governments to explore possible joint efforts for utilizing the resource-rich sea.

Brunei, China, Malaysia, the Philippines, Taiwan and Vietnam claim all or part of the South China Sea, with its vast fishing grounds and potential oil and gas deposits.