The move appeared to be a diplomatic victory for Beijing several months after an international arbitration tribunal invalidated China's expansive territorial claims over the resource-rich waters in a case put forward by the Philippines.
Philippine President Rodrigo Duterte met with his Chinese counterpart Xi Jinping in Beijing as part of a charm offensive aimed at seeking trade and support from the Asian giant by setting aside the thorny territorial dispute.
"China has been a friend of the Philippines and the roots of our bonds are very deep and not easily severed," he told Xi in his opening remarks. "Even as we arrive in Beijing, close to winter, this is a springtime of our relationship," he added.
Xi said the meeting had "milestone significance." In a reference to the South China Sea temsions, Xi said that "although we have weathered storms, the basis of our friendship and our desire for cooperation has not changed."
"Both sides agreed that the South China Sea issue is not the sum total of the bilateral relationship," Liu said. The two sides agreed to return to the approach used five years ago of seeking a settlement through bilateral dialogue, he said.
Philippine diplomats could not be immediately reached for comment.
The talks had been suspended after China seized control of Scarborough Shoal, off the main Luzon island in the northern Philippines, and the Philippines launched the arbitration process under Duterte's predecessor.
Duterte was greeted by Xi with full military honors at the Great Hall of the People, the seat of the ceremonial legislature in the heart of Beijing. The two leaders oversaw the signing of agreements between their governments.
China has framed Duterte's visit as a step toward ending years of estrangement between the countries.
Dutert has walked a tightrope in trying to mend damaged relations with China while defending his country's claims in the disputed South China Sea.
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