In a statement, the Philippine Foreign Ministry said the two countries acted "following our consultations". It said: "We will continue the consultations to address the remaining issues."

Following the withdrawal, there were no Philippine or Chinese government vessels in the lagoon, Philippine Foreign Ministry spokesman Raul Hernandez said in a text message to Rappler.com, a Philippine website, which said the move could ease tension.

About the broadcaster:

Lee Hannon is Chief Editor at China Daily with 15-years experience in print and broadcast journalism. Born in England, Lee has traveled extensively around the world as a journalist including four years as a senior editor in Los Angeles. He now lives in Beijing and is happy to move to China and join the China Daily team.

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