China Coast Guard ships sailed near a Philippine Coast Guard vessel that was on a resupply mission in a contested area of the South China Sea.

Footage shows the Chinese vessels looming nearby as the Philippine Coast Guard (PCG) and Armed Forces of the Philippines carried out the routine resupply mission in the disputed Ayungin Shoal on July 27.

Unlike previous encounters, the Chinese vessels maintained their distance, and the resupply mission to the BRP Sierra Madre - a rusting World War II era warship used as a Philippine military outpost - was completed without incident.

Philippine Coast Guard spokesman Commodore Jay Tarriela said: 'During the operation, various Chinese maritime forces were observed in the vicinity, including four (4) Chinese Coast Guard vessels, three (3) People's Liberation Army-Navy vessels, and two (2) Chinese Maritime Militia vessels. During the entire duration of the mission, the Chinese vessels maintained their distance and did not undertake any action to disrupt the mission.'

Last week, the Philippines and China reportedly reached an agreement to de-escalate tensions in the South China Sea.

The Philippines' Department of Foreign Affairs said both sides have agreed on a 'provisional arrangement' for the resupply missions, though the details were not made public.

However, PCG spokesperson Tarriela insisted that 'the position of the Philippines is steadfast, unwavering, and has not changed', adding Ayungin Shoal falls within the Philippine Exclusive Economic Zone.

Expansionist China currently lays claim over almost the entire South China Sea, one of the world's busiest sea lanes. But a United Nations-backed tribunal in 2016 deemed its claims groundless.

The Communist rogue state - accused of genocide for its crimes against the Uyghur population - has been steadily increasing its influence in recent years through investment in developing countries.