In 2012, China seized control of Scarborough Shoal, a fishing ground in the Philippines’ exclusive economic zone.
In a case brought by Aquino, the Philippines won a resounding victory at an international tribunal earlier this year over Beijing’s extensive territorial maritime claims in the area, infuriating the Asian giant.
But Duterte, who took office in June, shortly before the tribunal ruling, has made a point of not flaunting the outcome.
Asked whether the leaders had discussed the South China Sea, the foreign ministry’s spokesperson Hua Chunying said they had a “candid and friendly exchange of views on how to resolve relevant disputes”.
‘Full recovery’
The meeting between Xi and Duterte marked a “full recovery” of the “traditional friendship” between the two countries, Chinese vice minister Liu Zhenmin said, according to a transcript released by the Philippine president’s office.
They oversaw the signing of 13 bilateral cooperation documents on business, infrastructure, and agriculture, among other fields, he added.
Beijing has also offered the Philippines a $9 billion soft loan for development projects, a statement from the Philippine presidential press office said.
About $15 million of the promised loans will be earmarked for drug rehabilitation programmes amid Duterte’s anti-drug campaign, which has killed thousands of people and raised concern abroad of human rights violations.
China will also lift bans on 27 Philippine tropical fruit export companies. Previous sanctions on fruit were intended to punish Manila for its South China Sea stance.