Chinese Defense Minister Chi Haotian said he offered the Philippines cooperation against terrorism during talks with his host and counterpart, Angelo Reyes.
There is "a wide range of areas in which we can cooperate: for example, military training, exchange of students, information exchange regarding counter-terrorism, and cooperation on military equipment," Chi told a joint news conference.
The possibility of Philippines-China joint military exercises was also discussed by Reyes and Chi, though neither side elaborated on the Chinese offer.
The Asian neighbors are both battling Muslim militants, but they are also rival claimants to certain islands and fishing grounds in the South China Sea, particularly the Spratlys.
Chi said Beijing is offering cooperation "in all fields of defense and the armed forces," which he said would "facilitate peace, stability and the development of the region and the world at large."
Reyes said his meeting with Chi was "most productive and had the theme of enhancing defense and security relations between the two countries."
He said Chi told him the Chinese government was "looking forward to discussions on how they could assist further the defense department and the Armed Forces of the Philippines (AFP)."
Reyes said he and Chi did not discuss a recent dispute over 122 Chinese fishermen jailed in the Philippines since early this year for illegal fishing in Philippine waters off the coast of Palawan.
However, Reyes said they both reaffirmed the position of the two countries that territorial waters in the South China Sea "will not stand in the way of the development of the overall bilateral relations between the Philippines and China."
They also agreed "that peaceful and diplomatic solutions will be the venue for the resolution of such conflicts."
Reyes thanked Chi for the $3-million soft loan from the Chinese government for the acquisition of dump trucks for AFP engineering units.
"The visit also reaffirmed the Philippines commitment to the One-China Policy," he said.
Both defense officials, however, skirted discussions on the controversial offer made by Taiwan to sell the Philippines 24 F-5 fighter jets to boost the ill-equipped Philippine Air Forces (PAF) air patrol and defense capabilities.
Officials said the acquisition of the aircraft would greatly help the PAF guard Philippine territorial waters against poaching and intrusions by foreign vessels.
Beijing has made clear its strong opposition to the Philippines purchase of the jets from Taiwan, saying such a deal between Taiwan and the Philippines would violate the One-China Policy, as China regards Taiwan as a renegade province.
Reyes said the Philippines "will continue to respect the One-China Policy... that is the guidance of President (Arroyo)."
PAF chief Lt. Gen. Nestor Santillan said that while the country needs to acquire these fighter planes, the aircraft can be obtained from sources other than Taiwan. "I am not saying we are buying jets from Taiwan. What I can say is we will observe the One-China policy."
Chi was the second high-ranking Chinese official to visit the Philippines this month. Chinas No. 2 leader, Nationalist Peoples Congress head Li Peng, came to Manila last week.
A joint statement said Reyes "suggested to General Chi that both countries should undertake more activities within the framework" of a 2000 bilateral cooperation agreement that would "contribute to the progress and stability of the region."
Chi assured Reyes that China "will do everything it can to put forward friendship and intensify confidence-building measures, particularly the exchange of visits between the two countries defense establishments and armed forces officials."
Chi arrived in Manila late last Wednesday and is scheduled to call on President Arroyo tomorrow. Chi is a member of the powerful Politburo of the Chinese Communist Partys Central Committee, the vice chairman of the partys Central Military Commission and a state councilor. With AFP report