The Philippines and China on Tuesday sought to lower the level of tension in the South China Sea following a recent resupply incident, the Department of Foreign Affairs (DFA) said Tuesday.

In a statement, the DFA said a bilateral meeting was held in Manila - the second this year since January 17- following the June 17 incident.

The DFA said the two sides signed an Arrangement on Improving Philippines-China Maritime Communication Mechanisms and agreed to discuss how to operationalize this mechanism.

They also agreed to continue discussions on the possible resumption of the Joint Coast Guard Committee (JCGC) between the Philippines and China and proposed an academic forum among Filipino and Chinese scientists and academics on marine scientific and technological cooperation.

Philippine Foreign Affairs Undersecretary Ma. Theresa Lazaro and Chinese Vice Foreign Minister Chen Xiaodong "had frank and constructive discussions on the situation in the South China Sea," the DFA said in a statement.

"Noting recent incidents in the South China Sea, both sides recognized that there is a need to restore trust, rebuild confidence, and create conditions conducive to productive dialogue and interaction," the department said.

"The two sides discussed their respective positions on Ayungin Shoal and affirmed their commitment to de-escalate tensions without prejudice to their respective positions."

While there was "substantial progress on developing measures to manage the situation at sea," the DFA said "significant differences remain."

However, both sides agreed to continue discussions "to find a mutually-acceptable resolution to the issues." DMS