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South China Sea
ChinaDiplomacy

Could a China-Philippine joint development deal be the way forward in the South China Sea?

An agreement on offshore oil and gas exploration could pave the way for greater cooperation across the disputed waterway, Richard Heydarian writes

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Philippine Foreign Affairs Secretary Alan Peter Cayetano (left) gives Chinese Foreign Minster Wang Yi a handwritten letter from President Rodrigo Duterte to President Xi Jinping before their meeting in Beijing on March 21. Photo: EPA-EFE
Richard Heydarian

In a remarkable reflection of the blossoming Philippine-China relationship, the two neighbours have signalled their commitment to sharing contested resources in the South China Sea. Both are determined to ensure common interests, rather than disputes, define the overall texture of their relationship.

During his recent visit to Beijing, Philippine Foreign Secretary Alan Peter Cayetano raised the prospect of a joint development agreement (JDA) with China.

Hailing a “golden period” in relations, he expressed Manila’s wish that “South China Sea disputes will no longer block the development of bilateral ties” but instead, “be turned into a source of friendship and cooperation between our two countries”.

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His Chinese counterpart, Wang Yi, said the two neighbours were considering a JDA “in a prudent and steady way” to “advance cooperation on offshore oil and gas exploration”. If successful, a Philippine-China JDA could pave the way for a broader set of cooperative arrangements across the South China Sea basin.

Philippine President Rodrigo Duterte (right), pictured with Chinese Premier Li Keqiang when they met in Manila in November, has repeatedly expressed his preference for resource-sharing arrangements with Beijing to help resolve South China Sea disputes. Photo: AP
Philippine President Rodrigo Duterte (right), pictured with Chinese Premier Li Keqiang when they met in Manila in November, has repeatedly expressed his preference for resource-sharing arrangements with Beijing to help resolve South China Sea disputes. Photo: AP
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What is at stake is the effective and peaceful management, if not permanent and just resolution, of one of the most intractable and high-stakes maritime disputes of the 21st century. In the meantime, however, the Philippines and China will have to overcome significant legal and political hurdles in their quest for a “win-win” solution.

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