Philippine forces have stage drills that included seizing an island in the South China Sea as Chinese navy ships kept watch from a distance.

Philippine forces practised retaking an island in the South China Sea Wednesday in the first such combat exercise in the disputed waters as Chinese navy ships kept watch from a distance, the Philippine military chief said.

Supported by gunboats and a former U.S. Coast Guard cutter, Philippine Navy SEALs and Marines approached a South China Sea island owned by Manila in a simulated seizure drill as Chinese forces observed from afar on Wednesday.

The Philippine military has opened two weeks of combat drills that will include seizing an island in the disputed South China Sea and likely be frowned upon by China.

China has yet to respond to the call, which includes payment for two damaged boats and the return of rifles seized during the June 17 stand-off The Philippine military chief has reiterated calls for Beijing to compensate for damages and return rifles seized during a violent confrontation in the disputed South China Sea that left a Filipino sailor with a severed thumb.

In recent months, China has deployed navy, coast guard and so-called maritime militia forces – allegedly Chinese fishing vessels – in a bid to bar the Philippines from a trio of strategically important reefs and islands in the South China Sea.

A major upgrade of the airstrip on the island, known locally as Pag-asa, is among the most critical projects in Manila's new defence concept Out in the South China Sea, where waves crash against the shores of contested islands,

China has rapidly expanded its military and has become increasingly assertive in pursuing territorial claims in the South China Sea, which Beijing claims virtually in its entirety.