China and Vietnam have agreed to set up a hotline in case of territorial disputes on Wednesday, following meetings between Chinese President Xi Jinping and his Vietnamese counterpart Truong Tan Sang.

The agreement was signed in Beijing by the two countries' agriculture ministers, who are responsible for regulating the fishing industry. The two sides signed agreements on border defence, management of accidents at sea and an amendment of an existing agreement on oil exploration.

The two countries have a long-standing dispute over islands in the area which sit amid some of the world's busiest commercial sea lanes, along with rich fishing grounds and potential oil and gas deposits.