China's vice foreign minister and his Philippine counterpart have had a "frank and in-depth" exchange on sea-related issues, in particular the issue of the disputed Sabina Shoal, the Chinese foreign ministry said on Wednesday.

During their meeting, China reiterated its demand for the immediate withdrawal of a Philippine vessel and vowed to "firmly uphold its sovereignty", the ministry statement showed.

Both countries agreed to continue their dialogue through diplomatic channels.

Xianbin Reef, also known as Sabina Shoal, is in disputed waters of the South China Sea near the Spratly Islands, which China calls the Nansha Islands.

China claims sovereignty over most of the South China Sea. The countries have clashed over competing claims at several atolls in the sea, through which $3 trillion worth of trade passes annually.