China believes the Philippine government is well-able to handle the rebellion, foreign ministry spokesman Kong Quan was quoted as saying by state media.

"China is concerned about the event in Manila," he said.

"As a friendly neighbor, China hopes the Philippine government could maintain political stability so that the people could enjoy a peaceful life," he said.

Around 200 rebel troops took over a complex in Manila's financial district early Sunday and set up booby traps, demanding the government step down.

By nightfall about some 50 of them had surrendered and the rest were locked in talks with a government negotiator.

WAR.WIRE