LANGKAWI, Malaysia (Reuters) - The regional bloc ASEAN and China should make headway on a protracted code of conduct for the South China Sea by tackling thorny "milestone issues", including its scope and if it can be legally binding, the Philippines' top diplomat said on Saturday.

Beijing and Manila have agreed to continue talks on settling their territorial differences despite Philippine protests about the presence of a Chinese "monster ship" near the contested Scarborough Shoal.

China on Thursday again urged the Philippines to pull out the Typhon missile launchers of the United States after they were reportedly moved to another location in Luzon.

China’s navy has commissioned a new-generation frigate as competition rises with the US and other regional powers, saying the ship will “play a vital role in enhancing the overall combat effectiveness” of its forces.

New U.S. Secretary of State Marco Rubio discussed China's "dangerous and destabilizing actions in the South China Sea" with his Philippine counterpart on Wednesday and underscored the "ironclad" U.S.

Analysts say the agreement ‘commits both states to a status quo’ and urge the Philippines to hold firm on its South China Sea stance.

Foreign Affairs Minister Sugiono and US Secretary of State Marco Rubio exchanged views on maritime security in the South China Sea.

Prime Minister Lawrence Wong said that escalating tensions between the two countries could lead to catastrophic global consequences.

The United States is not a party to the issue of the South China Sea and has no right to interfere in maritime issues between China and the Philippines, Foreign Ministry spokeswoman Mao Ning said on Thursday after Washington and Manila made unwarranted remarks against Beijing.

Donald Trump claims China ‘operates’ the Panama Canal. This isn’t quite right, but China’s investment in shipping infrastructure globally has made many countries jittery.

The new US president is delivering a virtual address, one of the first major speeches of his presidency, at the World Economic Forum in Davos.