neither sides has agreed how to define China-Phillipine water. All sides need to work this out peacefully. It is in China's interest to resolve conflict. it cost them more money to be in dispute than sign a treaty with Phillipine. my guess is China will eventually make concession with treaty with Phillipine.
it is dumb tobe in dispute with neighbor over bunch of rocks. we know China is not run by dumb people. the dispute is overblown by media to portray one side as bully. the relevent parties will resolve the issue, but some may not want that.
no doubt US/UK will work behind the scene to prevent such resolution. since China is becoming a great competitor to US/UK...and US want to slow China down as much as itcan.