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The Philippines
This Week in AsiaPolitics

The Philippine province caught in the cross hairs of US-China rivalry

  • Cagayan province near Taiwan plays host to a growing American troop presence, living cheek-by-jowl with hundreds of Chinese traders

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A man exits a Chinese restaurant in Santa Ana, near the Philippines’ northernmost EDCA site used by US forces. Photo: Jeoffrey Maitem
Jeoffrey Maitem
The small coastal town of Santa Ana at the northeastern tip of the Philippines has a population of just 40,000, but beneath its veneer of stunning beaches and shiny casinos lies an undercurrent of tensions wrought by a perceived power jostle between two superpowers.
Santa Ana and Lal-lo – two municipalities in Cagayan, a province facing Taiwan across the Luzon Strait – are among the new sites named under the United States-Philippines Enhanced Defence Cooperation Agreement (EDCA), a pact that allows for large-scale joint military exercises, regular troop rotations and the pre-positioning of associated defence material, equipment and supplies.
Situated around 400km (250 miles) from Taiwan, both municipalities have come under the spotlight due their proximity to a potential flashpoint with mainland China.
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Beijing sees Taiwan as part of China to be reunited by force if necessary. Most countries, including the US, do not recognise Taiwan as an independent state, but Washington is opposed to any attempt to take the self-governed island by force and is committed to supplying it with weapons.

Since mid-2023, after Manila gave the US access to four new military sites under the EDCA, Santa Ana has played host to both Chinese and American interests. The Americans have boosted their presence inside a naval base, while Chinese traders – purportedly numbering some 1,300 – operate businesses such as casinos and restaurants.
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Romeo Asuncion, Santa Ana’s planning and development officer, told This Week in Asia that foreign traders are vital for the town’s economic growth. He said foreign investors, who have operated in Santa Ana since 2010, accounted for about 8 million pesos (US$136,400) in annual gross income for the town.

“We don’t have any idea if they are spies but they came here as businessmen. They applied for permits at the Cagayan Economic Zone Authority,” Asuncion said of the Chinese traders.

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