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Beijing and Hanoi try to ease South China Sea tensions as Xi Jinping prepares for tussle with Trump for influence in region

Senior diplomat says both sides agree on how to manage their dispute

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A man raises a Chinese flag, right, next to a Vietnamese flag before a summit in Hanoi. Photo: Reuters

A senior Chinese official said on Friday that Beijing has reached an agreement with Vietnam on how to manage their South China Sea dispute ahead of a visit by President Xi Jinping next week that will see him competing with the United States for influence.

Xi will attend the Asia-Pacific Economic Cooperation summit in Da Nang along with other world leaders, including US President Donald Trump.

Hanoi and Beijing have competing claims in the waters and the dispute flared up in June when the Vietnamese government refused a Chinese demand to halt drilling by a subsidiary of Spanish company Repsol in the area.

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A meeting between their foreign ministers at a regional summit in Manila in August was cancelled, although the two sides have been working to mend relations in recent weeks.

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Assistant foreign minister Chen Xiaodong said the two countries had shared frank exchanges over the matter and reached a consensus.

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