UPDATE - China, Philippines to 'properly' handle differences

UPDATES THROUGHOUT

By Mahmut Atanur

BEIJING (AA) – China’s President Xi Jinping and Philippines counterpart Rodrigo Duterte agreed Thursday to "properly" handle differences, and achieve greater progress and improvement in bilateral ties.

The agreement comes during a state visit to China by Duterte, where he is seeking to expand trade and investments, financing for infrastructure projects, and also repair relations strained under his predecessor over territorial conflicts in the South China Sea.

On Thursday, state news agency Xinhua quoted China's President Xi Jinping as calling the countries "neighbors across the sea".

Xi added that although relations had gone through "twists and turns", the foundation of their friendship and willingness to cooperate remain unchanged.

In July, the Philippines secured a ruling at the Permanent Court of Arbitration at The Hague which specified that no country held sovereign rights over Scarborough Shoal in the South China Sea -- claimed by Manila as Panatag Beijing and by Beijing as Huangyan Island.

Duterte’s predecessor, Benigno Aquino III, brought the arbitration case over an area Manila calls the West Philippines Sea.

The court also rejected Chinese claims to much of the Sea, along with a 322-kilometer (200-mile) exclusive economic zone around the Spratly Islands.

Since taking office in June, Duterte has made a succession of outbursts against America, the country’s long time ally, and talked of forging links with China and Russia, bringing uncertainty to the the United States relationship.

On Thursday, Xi is reported to have said during talks with Duterte in Beijing that China highly values its relations with the Philippines, and is ready to work with the country to cement political trust and win-win cooperation, properly handle differences and become good partners.

He called managing differences in the Sea "an important foundation" for the healthy and stable growth of relations.

Xi also announced support for Duterte's efforts to fight drugs, terrorism and crime, and said it would conduct cooperation Philippines in the areas.

Duterte's war on drugs -- which has seen thousands killed -- has been roundly criticized internationally -- including by the U.S., United Nations and European Union, and activist groups -- for human rights abuses.

Prior to this week's trip, Duterte had insisted that there would be “no bargaining” over the Philippines’ claims in the resource-rich South China Sea, but Wednesday he said he would wait for Xi to raise the issue out of “basic courtesy”.

“If he mentions it in passing, and I will just say, ‘Mr. President I came here for a visit. I would not want to make hard imposition’," he was quoted by GMA News as telling a news conference in Beijing.

“As a matter of courtesy in the oriental way, you always have to wait because I am a visitor. I will not destroy the goodwill by just blurting out some,” he added.

Duterte arrived in China on Tuesday and he leaves Friday.

The trip is his first official visit to a foreign country outside of regional block the Association of Southeast Asian Nations (ASEAN) since he took office.