Tension continues to rise over the disputed South China Sea as China conducted a military exercise involving live firing of ammunition on Tuesday to improve its maritime battle capabilities.

According to the People's Liberation Army (PLA), at least 100 naval vessels participated in the drill designed to mimic battle conditions in a complex electromagnetic environment.

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The military drill, which took place at an undisclosed location, involved battalions of the Second Artillery Force launching missiles. Several soldiers also positioned electronic countermeasures against attacking ships and dozens of aircrafts that participated in the exercise.

The drill was conducted to improve the PLA's prowess especially in IT-based warfare environments. The navy's air defense and early warning programs were tested in the drill that saw thousands of shells and jamming bombs fired.

"Such live-fire maneuvers have effectively tested the troops' new weapons and joint war fighting capabilities," a high-ranking official with the PLA South China Sea fleet said.

In recent years, China has expanded its naval capabilities. In 2012, the country's first aircraft carrier was commissioned and added to its already impressive array of maritime fleets.

China is involved in a territorial dispute with neighboring countries over the South China Sea. Countries like Brunei, Taiwan, Malaysia, Vietnam and Philippines have all staked their claims.

China asserts ownership over a large part of the disputed territory and has been conducting a land reclamation project in the area. Experts say the area is potentially rich in crude oil and other natural gases.

Although high-ranking Chinese military officials have downplayed the implications of military drills in the contested waters, other countries have protested.

"The drills are regular military exercises scheduled in the annual plan that do not target any other country," China's Military of National Defense said in a statement.

Nonetheless, on Wednesday, the Philippines called for more transparency from China.

"We have been very transparent whenever we have exercises we tried to invite observes... to say and indicate that what we are doing is above board and that we are not threatening anyone," Colonel Restituto Padilla, spokesperson for the Armed Forces of the Philippines said.

"In the case of China, everybody in the region, the U.S. included, is encouraging them to be transparent so that all of their motives, all of their activities will not be questioned."

He noted that as a sovereign nation China can rightfully conduct military exercises provided they don't cross the Philippines' exclusive economic zone. 

Padilla stressed that the Philippines is not threatened by China's 10-day long military drills.

"We're not threatened at all because it's in international waters...We see it as the right of any sovereign nation," Padilla said. The Philippines is set to increase its defense budget by about 25 percent next year.

TagsChina Military Drill South China Sea, China Philippines Dispute South China Sea