China and the Philippines pledge to work towards doubling their trade volume, hopefully to reach 60 billion US dollars in 5 years time. This information was announced at an economic forum in Beijing on Wednesday. The President of the Philippines is also trying to smooth tensions over territorial disputes in the South China Sea and sign new trade deals with the world's second largest economy.

Healing wounds and welcoming cooperation, that's the point of Aquino's visit.

Benigno Aquino, President of The Philippines said "China is an economic power house; we now invite the Chinese business community to take part in this opportunity to invest, in an emerging economic force in South East Asia."

China is now the Philippines' third biggest trading partner. Two-way trade in 2010 reached some 28 billion dollars, up 35 percent from the previous year.

Wang Qishan, Vice Premier, PRC said "We should expand the trade volume; optimize the composition of imports and exports, and make efforts to bring bilateral trade to 60 billion US dollars by 2016."

Despite improving economic ties, tensions between the two nations have escalated this year over territorial disputes in the South China Sea.

The Philippines conducted military exercises with the United States in the disputed water and accuses China for its increasing presence in the region.

Meanwhile, China said Manila should stop harming China's maritime rights and interests.

S. Col. Huang Xueping, Director of America & Oceania Affairs Bureau, MND said "China's stand has been clear and persistent. China has undisputable sovereignty over the islands in the South China Sea and its surrounding waters."

After the first sea trial of China's aircraft carrier in early August, there was speculation it was a show a force intended to impress the Philippines.

Yet, Beijing maintains that its military advance is only for peaceful means.

Yang Yuejun, Spokesman of Ministry of National Defense said "China will stick to its defensive policy; this will not change because we develop some advanced weapons, nor will China change its naval strategy of offshore defense."

President Aquino's visit highlights economic cooperation and plays down the tensions over the South China Sea. Many experts believe as China is an important geo-economic and political partner to the Philippines, Aquino does not want the disputes to jeopardize ties. While one visit cannot resolve the problems, talks between the two sides may help keep the tensions from getting worse.