China and the Philippines held talks on their South China Sea dispute for the third time this year on Wednesday, after tensions escalated again at a new flashpoint in the contested waters.

As China is set to host bilateral talks with the Philippines this month, their South China Sea dispute is expanding from sea to air, increasing the risk of military confrontation, analysts warn. The Chinese Communist Party’s People’s Daily newspaper on Monday published an article warning that “China-Philippines relations stand at a crossroads” over the South China Sea dispute.