The Philippines said Wednesday it believes the ongoing dispute in the South China Sea should be resolved in a manner consistent with 'the spirit of good neighborly relations'.

"The Philippines is further encouraged by the Agreement on a Framework on the Code of Conduct on the South China Sea that will help us move towards negotiating an effective Code of Conduct," the Philippine Foreign Ministry said in a "Statement on the first anniversary of the arbitral tribunal award".

July 12 marked the first anniversary of the Arbitral Tribunal of The Hague's ruling on the South China Sea dispute in a case against China that was unilaterally initiated by the Philippines under the administration of former president Benigno Aquino III.

China has reiterated that the ruling was illegal and said it will not accept any proposition or action based on the decision.

"Secretary of Foreign Affairs Alan Peter S. Cayetano reiterates that the Duterte Administration is committed to its strategy to strengthen old allies and engage new partner nations," the statement said.

"The Philippines shall remain an enemy to none and a friend to all in its pursuit of economic and political benefits for the country, including the long-term security and stability in the region," it said.