Newsweek reached out to the Philippine Coast Guard and Chinese Foreign Ministry with written requests for comment. Why It Matters. Beijing claims most of the South China Sea as it

Beijing and Manila have agreed to continue talks on settling their territorial differences despite Philippine protests about the presence of a Chinese "monster ship" near the contested Scarborough Shoal.

US companies are interested in oil and gas projects in the Philippines, Manila’s energy chief said, as tensions with Beijing hamper exploration in disputed areas of the South China Sea.

The Philippine navy said on Friday its ships were holding drills near a contested shoal in the South China Sea, a day after Manila and Beijing agreed to seek common ground and find ways to cooperate despite ongoing disputes.

Companies explore oil and gas projects in the country’s deep waters as Manila seeks to diversify its energy sources.

Chinese Coast Guard ships fire water cannons at Unaizah May 4, a Philippine Navy chartered vessel, conducting a routine resupply mission to troops stationed at Second Thomas Shoal, on March 5, 2024, in the South China Sea. (Photo by Ezra Acayan/Getty Images)

The Philippines has threatened international lawsuits against China for the action, which it says is another sign of the country's ongoing aggression in the area.

A Philippine security official says China is “pushing us to the wall” with growing aggression in the disputed South China Sea and warned that “all options are on the table” for Manila’s response, incl