The Philippines has turned down a Chinese proposal to start bilateral talks, its foreign minister said on Tuesday, because of Beijing's pre-condition of not discussing a court ruling that nullified most of its South China Sea claims.

China said Monday that it had begun what would become regular military air patrols over disputed islands and shoals of the South China Sea, highlighting its claim to the vast area a week after an international tribunal said Beijing’s assertion of sovereignty over the waters had no legal basis.

China said Monday that it is closing off a part of the South China Sea for military exercises this week, days after an international tribunal ruled against Beijing's claim to ownership of virtually the entire strategic waterway.

The United States warned China on Thursday that it had not done enough to qualify for market economy status, especially in steel and aluminium, sowing the seeds for a trade battle between Washington and Beijing at the end of 2016.

China’s economy grew 6.7 per cent in the second quarter, unchanged from the previous three-month period, as a buoyant property market and government stimulus boosted demand for factory output.

China has called for fresh dialogue with the Philippines to resolve their South China Sea disputes following the landmark ruling by an international court on Tuesday.

China vowed to take all necessary measures to protect its sovereignty in the South China Sea and said it had the right to set up an air defense zone, after rejecting an international tribunal's ruling that denied its claims in the region.

Chinese President Xi Jinping said on Tuesday (July 12) China is dedicated to maintaining peace and stability in the South China Sea but will not accept any positions or actions based on the outcome of an international tribunal's arbitration on the country's long-running spat with the Philippines.

China's Ministry of Foreign Affairs declares that the award is null and void and has no binding force. China neither accepts nor recognizes it.

An international tribunal in The Hague delivered a sweeping rebuke on Tuesday of China’s behavior in the South China Sea, from the construction of artificial islands to interference with fishing, and ruled that its expansive claim to sovereignty over the waters had no legal basis.