A joint naval exercise between the US and the Philippines has entered its second day, in waters near Huangyan Island. Officials from both countries say the drills are regular and pre-arranged and have nothing to do with territorial disputes with China. China hasn't directly contradicted that stance, but it has issued a veiled warning to both nations not to compromise regional peace and stability.
The 6-day naval drill began on Thursday in Subic Bay, a former US naval base.
Some exercises are being held in waters facing Huangyan Island. But US and Philippine commanders have played down reports that the drills are a response to territorial disputes, calling them routine, and focused on regional security.
Captain Ruel Saonoy, Exercise Director, Philippine Navy, said, "It also sends a message to our neighbours that our navies share a common interest in keeping our seas and littorals open for safe commerce and the usual interactions of seafaring states."
The US meanwhile, says the drills are just another part of its overall strategic rebalance to Asia.
Rear Admiral Thomas Carney said, "It's certainly part of the rebalance that the US is looking to reinforce not only militarily but economically and politically with Asia."
But Huangyan Island IS the center of a long standing territorial dispute between China and the Philippines, and the scene of a number of recent standoffs.
Manila has recently beefed up its military presence at another disputed coral reef, prompting China to accuse the country of "illegal occupation".
But despite media reports that the current drill is weighted towards territorial issues, China's response this time has been more guarded.
Yang Yujun, spokesman of Chinese Ministry of National Defense, said, "It's China's consistent position that military cooperation between countries should not compromise regional peace and stability. As for media reports relating to the drill to current territorial disputes, we feel this is an exaggeration and media hype."
The Philippine military wants to build new air and naval bases at Subic Bay, coinciding with the US rebalancing towards Asia.
Professor Clarita Carlos, Philippine Defense Expert, said, "So I would imagine, there will be more visits by US naval personnel here and there will be more joint and combined exercises. Nothing wrong with that."
The frequency of US Navy visits has certainly increased dramatically. So far this year, 72 US warships and submarines have visited Subic Bay. In the whole of 2012 there were just 88 visits 54 in 2011 and 51 in 2010.
China continues to insist that regional peace and stability can only be reached through dialogue.
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