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As early as in the 1980s, the Chinese side proposed "shelving disputes and seeking joint development" to the Philippine side, which reflects China's sincerity and good faith and its adherence to international laws and practices. It has gained wide approval of the international community. However, the Philippine side did not take it seriously, nor make any positive responses.
There was clear consensus of solving disputes through bilateral negotiations between the Chinese and the Philippine sides. It is stated in the Joint Statement-PRC-RP Consultations on the South China Sea and on Other Areas of Cooperation in August 1995 that a gradual and progressive process of cooperation shall be adopted in a view to eventually negotiating a settlement of the bilateral disputes, and disputes shall be settled by the countries directly concerned. The Joint Statement between China and the Philippines on the Framework of Bilateral Cooperation in the Twenty-First Century in May 2000 states that the two sides "agreed to promote a peaceful settlement of disputes through bilateral friendly consultations and negotiations in accordance with universally-recognized principles of international laws, including the 1982 United Nations Convention on the Law of the Sea. The leaders of the two countries reiterated to address the disputes through peaceful dialogue in the Joint Statement in September 2011.
In 2002, China and the ASEAN countries including the Philippines signed the Declaration on the Conduct of Parties in the South China Sea (DOC), and the Section 4 stipulates that the parties concerned undertake to resolve their territorial and jurisdictional disputes by peaceful means, without resorting to the threat or use of force, through friendly consultations and negotiations by sovereign states directly concerned, in accordance with universally recognized principles of international law, including the 1982 United Nations Convention on the Law of the Sea.
With the active facilitation by the Chinese side, China and the Philippines exchanged views on relevant disputes, and made some progress. In September 2004, with the approval of both governments and witnessed by the two heads of states, China National Offshore Oil Corporation and Philippine National Oil Company signed the Agreement for Joint Marine Seismic Undertaking in Certain Areas in the South China Sea, which was expanded into China-Philippines-Vietnam trilateral agreement in March 2005. In order to further institutionalize relevant negotiations and consultations between China and the Philippines, the Chinese side officially proposed to the Philippine side to set up a Regular Consultation Mechanism on Maritime Issues. However, the Chinese side has not received any reply from the Philippine side until today. After the Philippine side provoked the Huangyan Island incident, the Chinese side took measures safeguarding sovereignty. The Chinese side then suggested again to restart China-Philippines Consultation Mechanism for Confidence-Building Measures. So far, there has been no reply from the Philippine side. At a time when bilateral peaceful means to settle the disputes are yet to be further explored, the Philippine side shut the door for bilateral negotiations on the excuse that they have exhausted other peaceful means and the arbitration is the only option.
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