Manila and Beijing agreed to improve communication and 'calmly deal' with incidents in the South China Sea, including the waters claimed by the Philippines, the Department of Foreign Affairs (DFA) said Thursday.

The DFA said that Filipino and Chinese diplomats had 'frank and productive discussions' to de-escalate the situation in the strategically and economically important waterway during a bilateral consultation on the South China Sea.

'Both sides agreed to calmly deal with incidents, if any, through diplomacy. They also agreed that continuous dialogue is important to keep peace and stability at sea,' the department said.

Relations between the Philippines and China have deteriorated in recent months, with both sides clashing multiple times in the disputed waters and trading accusations over the incidents.

President Ferdinand Marcos Jr. earlier emphasized the need for a 'paradigm shift' in tackling China's increasingly aggressive behavior in the West Philippine Sea as he said diplomatic efforts with Beijing were heading in a 'poor direction.'

According to the DFA, the Philippines and China also agreed to improve communications between foreign ministries and coast guards of the two countries.

'They also presented their respective positions on the Ayungin Shoal and assured each other of their mutual commitment to avoid escalation of tensions,' the agency said.

The Philippines intentionally grounded BRP Sierra Madre, a rusty World War II-era ship, at Ayungin Shoal to maintain the country's claim in the area.

China claims almost the entire South China Sea, encompassing waters and islands close to its neighbors' shores. It has ignored an international tribunal ruling in 2016, which stated that its claims have no legal basis.

Discussions between the two countries also covered potential academic exchanges on marine scientific research.

On Tuesday, China summoned the Philippine Ambassador to Beijing after Marcos congratulated Taiwanese president-elect Lai Ching-te and said he looked forward to working with him. China's foreign ministry warned the Philippine government 'not to play with fire on the Taiwan issue.'

The DFA issued a statement reiterating Manila's commitment to the One China policy, which states that the Philippine respects the position of Beijing that Taiwan is 'an integral part of Chinese territory.'

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