BEIJING, China - China has criticised the UN courts rejection of its claim in the South China Sea with Chinese newspapers warning of a military escalation in response to the verdict.

The tribunal at The Hague ruled on Tuesday that China has no legal basis for claiming nearly 90 percent of the South China Sea.

According to reports, Beijing has blamed the Philippines for the problems relating to South China Sea and issued a policy paper which said that the islands at the South China Sea are its inherent territory.

Chinese Vice Foreign Minister Liu Zhenmin has said, It is the Philippines that has created and stirred up the trouble.

Philippines had reportedly sought arbitration under a UN treaty from the international tribunal over Chinas territorial claims at the South China Sea.

In the policy paper issued by China on Wednesday, it maintained its sovereignty over the South China Sea and opposed other countries "illegal claims and occupation."

The paper further said, China Adheres to the Position of Settling Through Negotiation the Relevant Disputes Between China and the Philippines in the South China Sea.

The paper also said that Philippines destroyed survey markers set up by China and attempted to illegally occupy Chinas Renai Jiao by using a military vessel illegally run around it. It added that Philippines also tried to illegally occupy Chinas Huangyan Dao which had caused the Huangyan Dao Incident.

The paper marked that Philippines sought arbitration from the tribunal on January 2013 and thereby violated its agreement with China to solve disputes through bilateral negotiations.

It said, The Philippines has distorted facts, misinterpreted laws and concocted a pack of lies, in an attempt to deny Chinas territorial sovereignty and maritime rights and interests in the South China Sea.

Meanwhile, Liu has said that the judges who ruled against China might have been influenced by money. He added that the five judges were out of touch with the issues as they were from Europe. Adding, These judges are paid, so who's really behind this tribunal. Who was paying them? Was it the Philippines or some other country?"

However, Liu said that China is ready to negotiate with Philippines. He added, China stands ready to work with the new Philippine government and "early removal of obstacles posed by the arbitration case" will help relations.

Meanwhile, Philippines Foreign Secretary Perfecto Yasay has said, The Philippines strongly affirms its respect for this milestone decision as an important contribution to ongoing efforts in addressing disputes in the South China Sea.

Former Philippine President Benigno Aquino III, who brought the case against China in 2013, reportedly said that the ruling establishes better conditions that enable countries to engage each other, bearing in mind their duties and rights within a context that espouses equality and amity."

Further, reports quoted U.S. White House press secretary Josh Earnest as saying that the U.S. wants peaceful resolution to disputes over the South China Sea. He added that the parties involved should not engage in provocative actions.

Though the verdict could be seen as a major legal declaration, its impact is however uncertain as the tribunal has no power of enforcement.