Philipine president announces separation from U.S.

BEIJING -- Philippine President Rodrigo Duterte announced his country is separating from the U.S. in a speech before a Beijing economic forum Thursday after handing China a major diplomatic victory, agreeing to resume dialogue on their South China Sea territorial dispute following months of acrimony.

The rapprochement between the two Asian nations could widen a political rift between the United States and the Philippines, whose recently elected leader has made no secret of his antipathy for America and ordered an end to joint maneuvers between their militaries.

"Your honors, in this venue, I announce my separation from the United States ... both in military and economics also," Duterte said. His remarks were met with applause, but Duterte was not more specific.

In Washington, U.S. State Department spokesman John Kirby said Duterte's remarks were "inexplicably at odds with the very close relationship we have with the Filipino people as well as the government there on many different levels, not just from a security perspective."

Following talks in Beijing between Duterte and his Chinese counterpart Xi Jinping, a senior Chinese diplomat announced the sides had agreed to restore the full range of contacts, although he said the leaders touched only briefly on the South China Sea.

"Both sides agreed that the South China Sea issue is not the sum total of the bilateral relationship," vice foreign minister Liu Zhenmin told reporters.

The two sides agreed to return to the approach used five years ago of seeking a settlement through bilateral dialogue, Liu said.

That was followed with an announcement by Philippine trade secretary Ramon Lopez at a bilateral economic forum his country and China will sign $13.5 billion of deals this week. He did not elaborate.

Separately, the Philippines Presidential Communications Office said Xi committed more than $9 billion in low-interest loans to the country, with about a third of the loan offer coming from private banks.

About $15 million in loans will go toward drug-rehabilitation programs.

In opening remarks to his talks with Xi, Duterte hailed a warming of relations with China.