President Rodrigo Duterte and Chinese President Xi Jinping met and threshed out several issues, including contentious West Philippine Sea (WPS) at the start of the second day of his official visit to China, presidential spokesman Salvador Panelo said on Friday.

The two leaders met at the Diaoyutai State Guest House where they discussed the comprehensive strategic cooperation between their respective nations.

the crafting of a Code of Conduct in the WPS. With the Philippines as the designated country coordinator of the ASEAN-China Dialogue Relations, he said the Code of Conduct would contribute in the resolution of numerous conflicts in the disputed areas of the WPS.

President Xi agreed with President Duterte on the need to formulate the regulation.

President Duterte was firm in raising with Xi concerns relating to the Philippines’ claim in the WPS, including the ruling held by the Permanent Court of Arbitration in the Hague.

He said that the arbitral award is final, binding and not subject to appeal.

In response, President Xi reiterated his government’s position of not recognising the arbitral ruling as well as not budging from its position.

Both Presidents agreed that while their opposing positions will have to remain, their differences however need not derail nor diminish the amity between the two countries.

They shared the view that the contentious issue is not the sum total of the Philippines-Chinese bilateral relationship.

They affirmed the belief that the foundation and future of their countries’ friendship cannot be anchored on their respective positions on the subject, and that the basis of their ties is their centuries old friendship as well as the benefits that will redound to their peoples by virtue of their cooperation.

Duterte and Xi agreed to work together, on the basis of mutual trust and good faith, to manage the South China Sea issue, and to continue to dialogue peacefully in resolving the conflict.

The two leaders agreed on the importance of self-restraint and respect for freedom of navigation in – and overflight above – the South China Sea.

Duterte raised the possible joint exploration between the Philippines and China in the WPS. President Xi, for his part, said the steering committee created for that purpose should prepare a substantive program on the matter.

Regarding the Recto Bank incident, Duterte said China side has recognised and confirmed the responsibility of the Chinese fishing crew. He expressed appreciation of China’s readiness to provide compensation to fishermen who almost lost their lives.

Describing the bilateral meeting between the two governments, the President said: “It went very well.”

Aside from measures of continued understanding and cordiality committed by the two leaders, the 8th meeting between them also saw the Philippines and China enter into a number of agreements for cooperative measures and assistance in the key areas of education, science and technology, and economic growth, among others.

Specifically, the agreements are as follows:

* Exchange of Notes on Cooperation Procedure for the Availment and Utilization of Concessional Loan under a Renminbi-denominated Loan Facility (between the Philippine DFA and the China International Development Cooperation Agency);

* Memorandum of Understanding on Cooperation in the Field of Higher Education from 2019 to 2024 (between the Philippine CHED and Chinese Ministry of Education);

* Memorandum of Understanding on Scientific and Technological Cooperation (between the Philippine DOST and Chinese Ministry of Science and Technology);

* Cooperative Arrangement on the Implementation of the Intergovernmental Agreement Regarding Cooperation and Mutual Assistance in Customs Matters (between the Philippine DOF/BOC and the Chinese General Administration of Customs);

* Implementation Contract on Project of China-Aid Container Inspection Equipment (between the Philippine DOF/BOC and the Chinese Ministry of Commerce); and

* Preferential Buyer’s Credit Loan Agreement of Project Management Consultancy of the Philippine National Railways South Long Haul Project (between the Philippine DOF and the Export-Import Bank of China).

The President’s activities on the second day of his official visit here in China are a reflection of continued good faith and warm friendship between the two presidents, and undoubtedly, a testament to the enhanced and enduring bond between the Philippines and China, said Panelo in his statement.