South China Sea: Philippines says it has ‘leverage’ over China after Xi warns of 'trouble'

Malacanang says the 2016 ruling, which did not recognise Beijing’s control over the waters is “not useless”, despite China’s refusal to accept the decision. Presidential spokesman Salvador Panelo said: “We have a bargaining leverage. “If we didn’t have that arbitral ruling, we can’t say ‘what is the basis of your presence here?’ It’s not useless. “The only problem now is the enforcement of the ruling.”

The ruling from the Hague-based international tribunal was handed down at the start of President Rodrigo Duterte’s term.

Mr Panelo remained confident China would relinquish its control over one of the world’s busiest waterways through “friendly negotiations”.

However China’s President Xi Jinping previously warned the Philippines of “trouble” should it pursue oil exploration in the region.

Meanwhile the Association of Southeast Asian Nations (ASEAN) has sought to defuse the situation.

The ASEAN confirmed it has made good progress on a Code of Conduct negotiating draft for the disputed territory.

The bill is likely to be completed by the end of this year, the Thai foreign ministry has said, as regional leaders met in Bangkok.

Foreign ministry spokeswoman Busadee Santipitaks said: “The single draft negotiating text is currently being discussed and negotiated between ASEAN and China.

“We expect the first reading of this draft to finish by this year.”

China says it owns most of the waterway – a claim that other states dispute.

In recent months, China has flexed its control over the area and has been seen aggressively building and militarising artificial islands.

Beijing has also confronted ships that enter the zone, which has accelerated the ASEAN’s efforts negotiate on the area.

source: express.co.uk