China's leader has taken a swipe at the Philippines over its security treaty with the United States, saying beefing up military alliances cannot achieve regional security.

Chinese President Xi Jinping held a telephone conversation with Philippine President Rodrigo Duterte on Friday, the same day Manila concluded one of its largest-ever joint military exercises with Washington.

The Chinese Foreign Ministry and the Philippine President's Office said in their statements that the telephone talks lasted about one hour.

Xi stressed that recent developments in the international situation have once again proven that regional security cannot be achieved by strengthening military alliances.

He called on Duterte to exercise his own regional security leadership and work together with China to safeguard regional peace and stability.

The two leaders acknowledged that territorial disputes exist in the South China Sea but agreed to enhance cooperation in trade and investment.