Beijing, Manila agree to restore trust, continue talks on S. China Sea

Officials from both sides hold 'frank and constructive talks' 2 weeks after skirmish

- Mara Cepeda and Lim Min Zhang

MANILA/BEIJING - China and the Philippines have agreed to restore trust and build confidence in the South China Sea, two weeks after a skirmish near the disputed Second Thomas Shoal left a Filipino soldier injured and raised the risk of a serious conflict.

The agreement came after officials from both sides held "frank and constructive" talks on the South China Sea in Manila on July 2. The meeting was headed by Chinese Vice-Foreign Minister Chen Xiaodong and his Philippine counterpart Theresa Lazaro.

Maritime tensions have run high in the past year, with both sides clashing repeatedly over the Philippines' resupply missions to the Second Thomas Shoal, where an ageing warship called the BRP Sierra Madre has been grounded since 1999 to serve as Manila's remote military outpost.

The latest escalation came in a face-off between Chinese coast guard and Philippine naval vessels on June 17.

Using knives and spears, Chinese personnel boarded the Philippine Navy dinghies and confiscated firearms - the first intervention since new Chinese rules came into force on June 15 that authorise China's coast guard to detain foreigners who trespass into waters it proclaims as its own.

On July 2, the Philippines said that "both sides recognised that there is a need to restore trust, rebuild confidence and create conditions conducive to productive dialogue and interaction".

"The two sides discussed their respective positions on Ayungin Shoal and affirmed their commitment to de-escalate tensions without prejudice to their respective positions," said the Philippine statement, which added that "significant differences remain". Ayungin is the local name for the Second Thomas Shoal.