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"The crux of China-Philippines disputes on the South China Sea is the Philippines' illegal occupation of islands and reefs of China's Nansha Islands and the two countries' maritime delineation." Ouyang stressed.

They signed the statement after holding talks at the Great Hall of the People in downtown Beijing. King Mohammed VI is paying a state visit to China at Xi's invitation.

Before unilaterally initiating arbitration in Jan. 2013, Hua said the Philippines did not hold any consultations or negotiations with China on relevant items, much less exhaust "all bilateral means."

China, Wang noted, is willing to use the SCO as a platform to speed up the dovetailing of the Silk Road Economic Belt initiative with the Eurasian Economic Union.

The government will promote the development of border trade, encourage companies to establish international marketing networks and their own brands, according to the guidelines.