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Reuters
Reuters
Business
By Yew Lun Tian and Neil Jerome Morales

China, Philippines agree to handle disputes peacefully, boost cooperation

National flags are placed outside a room where Philippine Finance Secretary Carlos Dominguez and China's Commerce Minister Gao Hucheng address reporters after their meeting in Beijing, China, January 23, 2017. REUTERS/Damir Sagolj/Files

China and the Philippines have agreed to set up a direct communications channel between their foreign ministries on the South China Sea to handle disputes peacefully, they said on Thursday.

Their agreement, which contained 14 elements aimed at cooling security tensions and boosting economic cooperation, comes as they strive to mend a relationship hurt after the Philippines won a 2016 arbitral ruling that invalidated China's expansive claims in the South China Sea.

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