The Philippines and Australia are working towards a new defence agreement to be signed next year, their defence ministers said on Friday, as both nations seek to step up military cooperation to deal with shared security challenges in the Indo-Pacific.

Australia’s defense minister and his Philippine counterpart are meeting in Manila for talks spotlighting their concern over Beijing’s actions in the South China Sea.

Footage shows a Chinese coast guard vessel chasing a Philippine boat and then ramming a Chinese warship. It was the latest confrontation in the contested waters.