The Philippines and China have reached an agreement to “de-escalate tensions” in the South China Sea, according to a statement released by Manila on Tuesday. The agreement follows a violent confrontation in the disputed waters last month, marking the most serious incident in a series of escalating conflicts between the two nations. On June 17, Chinese coast guard personnel, wielding knives, sticks, and an axe, surrounded and boarded three Philippine navy boats during a resupply mission to Second Thomas Shoal. The incident resulted in a Filipino soldier losing a finger, and Manila accused the Chinese coast guard of looting guns and damaging three boats, including their navigational and communication equipment. Beijing, however, maintains that its coast guard acted in a “professional and restrained” manner and blamed Manila for the clash. A handful of Filipino troops are stationed on a rusty warship intentionally grounded on Second Thomas Shoal in 1999 to assert Manila’s claim to the area. Following the incident, Philippine Foreign Affairs Undersecretary Theresa Lazaro and China’s Vice Foreign Minister Chen Xiaodong engaged in “frank and constructive discussions” on Tuesday, according to a statement from the Philippine foreign ministry. The statement highlighted that both sides discussed their respective positions on Ayungin Shoal (the Philippine name for Second Thomas Shoal in the Spratly Islands) and affirmed their commitment to de-escalate tensions without compromising their individual stances. The statement acknowledged the recent incidents in the South China Sea and recognized the need to restore trust, rebuild confidence, and create an environment conducive to productive dialogue and interaction. However, it also acknowledged the presence of “significant differences” between the two nations. China asserts almost complete sovereignty over the South China Sea, disregarding competing claims from several Southeast Asian nations, including the Philippines, and an international ruling that its stance lacks legal basis. In previous confrontations near disputed reefs, Chinese forces have employed water cannons, military-grade lasers, and have even collided with Filipino resupply vessels and their escorts. On Tuesday, Philippine Navy Rear Admiral Roy Vincent Trinidad described the June 17 incident as “the most aggressive” in “recent history.” He expressed concern about the potential for unintended consequences stemming from China’s actions, stating that they increase the risk of miscalculations. The latest confrontation has sparked concerns about the possibility of the dispute involving the United States, which has a mutual defense pact with Manila. While the Philippine government has stated that it does not consider the June 17 clash as an “armed attack” that would trigger the treaty provision for Washington’s assistance, the United States has expressed its desire to see tensions de-escalated. In Washington, State Department spokesman Vedant Patel stated that the United States “would welcome any efforts to de-escalate tensions in the South China Sea,” but emphasized that “actions speak louder than words” when dealing with Beijing. On Tuesday, the two sides signed an agreement to enhance the Philippines-China Maritime Communications Mechanism and committed to continuing discussions between their coast guards. China and the Philippines initiated the consultative meeting in 2017 with the aim of promoting peaceful conflict management in the South China Sea. Last week, Philippine Foreign Affairs Secretary Enrique Manalo announced that the Manila meeting would aim to establish “confidence-building measures” that could serve as the foundation for “more serious discussions.” Manalo emphasized the importance of dialogue and diplomacy, stating that these methods should prevail even in the face of serious incidents. However, he acknowledged the challenges posed by these events. Second Thomas Shoal is located approximately 200 kilometers (120 miles) from the western Philippine island of Palawan and over 1,000 kilometers from China’s nearest major landmass, Hainan Island. China maintains a presence in the waters surrounding the shoal by deploying coast guard and other vessels. Additionally, they have transformed several reefs into artificial, militarized islands.