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Opinion | South China Sea: why the Philippines needs a Chinese energy deal

  • After decades of failed negotiations, a deal to jointly explore and exploit the oil and gas in the South China Sea would invigorate ties and solve Philippine gas supply woes
  • But Marcos Jnr needs to find the political determination and courage to make the first move

Reading Time:4 minutes
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Illustration: Craig Stephens
There seems little room for compromise amid tensions in the South China Sea between China and the Philippines. All the while, the space to prevent an escalation, or worse, appears to be narrowing.
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Pointing to historical rights dating back centuries, Beijing claims the fishing, navigation and resource development rights over much of the disputed waters. Manila in turn asserts that the disputed area is clearly within its UN-mandated 200 nautical mile exclusive economic zone.
While China mostly relies on its massive coastguard (the world’s largest by far) to do its bidding, the Philippines has been building a coalition of nations to support its much smaller naval and coastguard presence.
This includes strengthening its defence cooperation with the US under the decades-long Mutual Defence Treaty, and forming military alliances with Japan and Australia. Other countries, including Britain, Canada, Germany, France, South Korea and India, have pledged varying degrees of support for the Philippines.

However, past Sino-Philippine relations could offer a solution that might just breathe new life into the strained relationship, namely, joint oil and gas exploration and production. Far-fetched as it might sound, the two countries have previously agreed on oil and gas cooperation.

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Why is the Philippines aligning itself with the US after years of close China ties under Duterte

Why is the Philippines aligning itself with the US after years of close China ties under Duterte
As recently as in 2016, preliminary talks centred on a deal to explore energy sources in the disputed South China Sea. Talks resurfaced two years later but failed to gain traction. However, in 2005, China, Vietnam and the Philippines signed a deal to survey the ocean floor for oil and gas.
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