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South China Sea
OpinionChina Opinion
Zahira Khan
Zahira Khan

Opinion | How China’s economic diplomacy can defuse tensions with the Philippines

  • Returning to a supposed Duterte-era deal to preserve peace in the Spratly Islands would be a pragmatic step for Manila amid military tensions
  • Beijing should opt for economic investment instead of military assertiveness which only serves to harden negative public opinion among Filipinos

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Members of the Philippine Coastguard look on as a Chinese vessel blocks their resupply mission route in the Second Thomas Shoal on March 5. Photo: Reuters
Zahira Khan
China and the Philippines have recently exchanged words over a claimed Duterte-era agreement to manage tensions at Second Thomas Shoal. China’s embassy in Manila announced earlier this month that both nations were exploring ways to defuse the dispute and were committed to maintaining agreements reached by both sides. Manila later denied the claim, calling it propaganda.
Former president Rodrigo Duterte and his spokesperson Harry Roque said there was a “gentleman’s agreement” between the two countries in which they would not transfer construction materials to the shoal but only provide food and water supplies to personnel stationed on the Sierra Madre, the Philippine warship grounded there since 1999 to serve as a military outpost. This aimed to preserve peace in the disputed Spratly Islands without compromising sovereignty.

China claimed it had a similar understanding with the Marcos administration after it came to power in 2022, whereby the government would keep honouring the agreement. However, Beijing accuses Manila of unilaterally abandoning the arrangement since February 2023 without explanation.

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Despite the tense exchange, the recent disclosure of the arrangement by Beijing indicates a potential for improved relations between the two countries if they proceed calmly. China aims to convey to the Philippine public that its actions, such as using water cannons against Philippine vessels allegedly supplying construction materials to the disputed shoal, were merely responses to Manila’s violation of their shared understanding.
Nearly 17,000 troops from the armed forces of the Philippines and United States are currently engaged in the annual Balikatan military exercises. This year’s drills come as the US deployed a missile system capable of launching ballistic missiles with a range of 370km and Tomahawk cruise missiles with a range of 1,600km.
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The deployment signals the US’ ability to position offensive weaponry near China for potential contingency operations in the Taiwan Strait, posing a destabilising threat. Activists in the Philippines have expressed concern that such deployments expose the northern part of the country to potential Chinese attacks in the event of a conflict between the US and China in the region.

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