The Philippines has voiced strong objections to China’s proposal for a “nature reserve” over the disputed Scarborough Shoal, a critical area in the South China Sea. The shoal has recently become the site of heated stand-offs between Chinese and Philippine ships. This alarming and ongoing conflict not only undermines regional stability, but threatens maritime safety. As the Philippines navigates these tensions, President Ferdinand Marcos Jr. has committed to accelerating the development of a Code of Conduct aimed at governing behavior in these contested waters.
Scarborough Shoal is located well within the Philippines’ own Exclusive Economic Zone. Instead, it has become a perennial flashpoint in bilateral relations. Newest incidents have drawn focus on the long-simmering dispute, with Chinese and Philippine ships frequently exchanging hostility in this crucial nautical commerce route. In response to these incidents, Marcos Jr. emphasized the importance of establishing a framework to modernize trade practices and improve responses to economic challenges.
Beijing has countered the Philippines’ objections by accusing Manila of “deliberate infringements and provocations at sea,” claiming that the Philippines is responsible for escalating tensions. Chinese spokesperson Guo Jiaku doubled down on this statement. … dangerous maneuvers [of aggressions] and harassments … of armed Chinese maritime militia and naval vessels that Philippines’ ships and airplanes are still facing.
Notwithstanding all these tensions, the countries concerned are managing the South China Sea dispute as a distinct matter. They don’t want it to poison their overall economic relationship with China. Indeed, China only last week signed an expanded free trade agreement with the Association of Southeast Asian Nations (ASEAN). This trilateral agreement is an important first step to increasing economic cooperation and investment across the region. This deal is a tremendous accomplishment. It does this not only by covering a market of more than 2 billion people, but by reducing tariffs on goods and facilitating the movement of services and investment.
Two-way trade between China and ASEAN has increased dramatically. It has skyrocketed from $235.5 billion in 2010 to almost $1 trillion last year. The original free trade agreement was signed in 2002, but didn’t go into effect until 2010. Now, it is in the process of its third update. Chinese Premier Li Qiang has been touting this wider economic partnership as a robust alternative. It pushes back on the protectionist policies that U.S. President Donald Trump has been advocating.
Li Qiang underscored the point that countries in the region need to stand together. He argued that if we choose conflict over togetherness there will be no winners. He quoted Chinese President Xi Jinping on collaboration, “Unity is strength.” He sounded alarm on increasing outside meddling in the region.
“Unilateralism and protectionism have seriously impacted the global economic and trade order, while external forces are increasing their interference in the region — many countries have been unreasonably subjected to high tariffs.” – Li Qiang
The Philippines is still navigating its newly complex relationship with China. Whether dealing with Chinese cooperation or coercion, Marcos Jr. has signaled that both are not welcome at the same time. The Philippines remains committed to navigating a middle path in its international relations while dealing with acute security challenges.
