Manila filed the case in 2013 to seek a ruling on its right to exploit the South China Sea waters in its 200-nautical mile exclusive economic zone (EEZ) as allowed under the United Nations Convention on the Law of the Sea (UNCLOS).

The Hague-based Permanent Court of Arbitration rejected Beijing`s claim that the disputes were about territorial sovereignty and said additional hearings would be held to decide the merits of the Philippines` arguments.

China has boycotted the proceedings and rejects the court`s authority in the case. Beijing claims sovereignty over almost the entire South China Sea, dismissing claims to parts of it from Vietnam, the Philippines, Taiwan, Malaysia and Brunei.

The tribunal found it had authority to hear seven of Manila`s submissions under UNCLOS and China`s decision not to participate did "not deprive the tribunal of jurisdiction".

The Chinese government, facing international legal scrutiny for the first time over its assertiveness in the South China Sea, would neither participate in nor accept the case, Vice Foreign Minister Liu Zhenmin told reporters.

"The result of this arbitration will not impact China`s sovereignty, rights or jurisdiction over the South China Sea under historical facts and international law," Liu said.

"From this ruling you can see the Philippines` aim in presenting the case is not to resolve the dispute. Its aim is to deny China`s rights in the South China Sea and confirm its own rights in the South China Sea."

The Philippine government welcomed the decision.

Solicitor General Florin Hilbay, Manila`s chief lawyer in the case, said the ruling represented a "significant step forward in the Philippines` quest for a peaceful, impartial resolution of the disputes between the parties and the clarification of their rights under UNCLOS".

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