The Thai warning came as the U.S. expressed its grave concern about the most serious fighting in years between the Southeast Asian neighbors. The U.S. and China compete for influence in fast-growing Southeast Asia, and both have good relations with Thailand and Cambodia.

Of course, trouble at the 508-mile (817 km) shared border is nothing new. For over a century, Thailand and Cambodia have contested sovereignty at various undemarcated points in the thick jungle punctuated with culturally-significant temples albeit with scant strategic or economic value.

China has dismissed allegations that it was supplying weapons to Cambodia amid its ongoing border conflict with Thailand that has led to at least 33 people dying and hundreds of thousands displaced.

"The U.S. already flunked the test and that should be a wakeup call," a former senior U.S. State Department official told Newsweek.

Thailand and Cambodia exchanged heavy artillery fire for a second day on Friday as border fighting intensified and spread, while Cambodia's leader said Thailand had agreed to a Malaysian ceasefire proposal but then backed down.