Philippines says China tails multi-nation sea exercises

MANILA (Reuters) - The Philippines said on Wednesday that three Chinese navy ships tailed a joint military exercise it began with Canada, the United States and Australia in disputed South China Sea waters.

Southeast Asian states oppose Beijing's claim to 90% of the water, which is rich in fishing stocks, is believed to have oil and gas deposits, and sees $3 trillion of annual trade transit.

The two-day exercise was the first by the four nations, their militaries said, and follows the first Philippines-Japan joint exercise in the disputed South China Sea last week.

The militaries' statement said they uphold the right to freedom of navigation and overflight of the South China Sea, adding that naval and air force units will work together in Manila's 200-nautical mile exclusive economic zone.

"We stand together to address common maritime challenges and underscore our shared dedication to upholding international law and the rules-based order," the statement read.

China's military later said it had organised a combat patrol near the Scarborough Shoal area, which Manila calls Bajo de Masinloc and China refers to as Huangyan island.

The Philippines military responded to that, saying three Chinese navy vessels had "tailed" the four-nation exercise.

"Aside from the usual illegal encroachment and presence of Chinese maritime militia vessels, we have not monitored any purported exercise or combat patrols," it added.

Manila and Beijing have repeatedly clashed in the area, accusing each other of aggressive behaviour involving their ships and of damaging the marine environment.

In 2016, the Permanent Court of Arbitration in The Hague said China's claims had no legal basis, a decision Beijing has rejected.

(Reporting by Neil Jerome Morales, Karen Lema, and Mikhail Flores; Editing by John Mair and Michael Perry)