Business World

PHL, China diplomats agree on friendly talks

- By Kyle Aristopher­e T. Atienza Reporter

THE PHILIPPINE­S and China have agreed to address their disputes over the South China Sea through friendly talks and cooperatio­n on marine research, toplevel diplomats of both countries who met in Shanghai revealed.

Philippine Foreign Affairs Undersecre­tary Ma. Theresa P. Lazaro and Chinese Assistant Foreign Minister Nong Rong met at the 8th Philippine­s-China Bilateral Consultati­on Mechanism on the South China Sea on Tuesday amid increasing conflict that reached new heights following Manila’s recognitio­n of Taiwan’s new leader.

In the past year, the Asian neighbors endured intense confrontat­ions mainly triggered by Beijing’s water cannon attacks and dangerous maneuvers that have placed Filipino vessels at risk in parts of the disputed waters closest to the Philippine­s.

Releasing a statement on the Shanghai consultati­ons, the Philippine Department of Foreign Affairs (DFA) said Ms. Lazaro and Mr. Nong “had frank and productive discussion­s to de-escalate the situation in the South China Sea and both sides agreed to calmly deal with incidents, if any, through diplomacy.

The two countries agreed to improve a so-called maritime communicat­ion mechanism, which includes “communicat­ions between foreign ministries and coast guards of the two countries.”

“Continuous dialogue is important to keep peace and stability at sea,” the DFA said.

Their talks also focused on Second Thomas Shoal — where worn-down Philippine Navy ship BRP Sierra Madre has been grounded since the 1990s, following China’s seizure of Mischief Reef — and “assured each other of their mutual commitment to avoid escalation of tensions.”

The shoal has been a major source of friction between the two countries, with the Chinese Coast Guard blocking Philippine resupply missions for troops stationed on the rusting vessel through the use of water cannons and dangerous maneuvers at sea.

The two countries also agreed on “possible academic exchanges on marine scientific research.”

“China has always opted for a bilateral talk but there should be a prerequisi­te: There must be a commitment to respect rules-based mechanisms such as the UNCLOS (United Nations Convention on the Law of the Sea) and the arbitral ruling in 2016,” Antonio P. Contreras, a political analyst at the University of the Philippine­s Los Baños, said in a phone call.

“There should be a commitment to respect global institutio­ns.”

Relying on China’s push to address the issue at the bilateral level may only give Beijing room to expand its illegal claims, Mr. Contreras warned.

Pursuing cooperatio­n on marine research would be an important step to keeping the two countries’ ties amid their tensions at sea, Philip Arnold “Randy” P. Tuaño, dean of the Ateneo School of Government, said in a Facebook Messenger chat.

Addressing common challenges such as the impacts of climate change on the South China Sea and threats to marine biodiversi­ty conservati­on and sustainabl­e fisheries management could “contribute to the developmen­t of sustainabl­e policies that benefit both nations, thereby reducing potential sources of tension.” However, it is essential to recognize that scientific cooperatio­n alone may not completely resolve political or military disputes, Mr. Tuaño noted.

“It should be part of a broader diplomatic strategy that includes political dialogue, conflict resolution mechanisms, and adherence to internatio­nal laws and agreements.”

CHINA ENVOY TO MANILA SEES TIES AT A CROSSROADS

Ties between the two countries continue to sour due to their disputes at sea, and Chinese Ambassador to the Philippine­s Huang Xilian on Wednesday said the two countries’ relations now “stand at a crossroads.”

The Philippine­s should “steer a right course for its relations with China,” he said in a speech in a year-end party with media workers, days after Mr. Marcos congratula­ted Taiwan Presidente­lect William Lai Ching-te and expressed willingnes­s to boost ties with the self-ruled island, which has governed independen­tly of China since the 1940s.

Mr. Marcos’ remarks prompted the Chinese government to summon the ambassador from the Philippine­s, with Beijing warning Manila “not to play with fire.”

The Chinese envoy to Manila urged the Philippine­s to “work together with China to bring bilateral relations back on the right track as soon as possible.”

The two countries are linked by “a strip of water and have been friendly for thousands of years,” he said.

“First of all, it is not ‘a strip of water’ that separates the Philippine­s and China,” said Jay L. Batongbaca­l of the University of the Philippine­s Institute for Maritime Affairs and Law, reacting to Mr. Huang ’s demands.

“This is an underhande­d attempt to deny the Philippine­s’ 200-nautical mile exclusive economic zone and continenta­l shelf areas and high seas that separate the two countries,” he said in a Viber message.

Mr. Batongbaca­l reminded China that respect goes both ways and is earned and mutually given, “not demanded by one from the other,” an act that China has “not done so for years now.”

The Philippine­s should continue to pursue its national interests and not defer to China’s demand.

Trade deficit between the Philippine­s and China hit $15.25 billion in 2021 with Manila on the losing end. Manila only exported $11.55 billion worth of products to China in that year, but imported $26.8 billion worth of goods from Asia’s largest market.

In November 2023, China was the Philippine­s’ source of imports valued at $2.72 billion, according to data from the Philippine Statistics Authority.

But the United States, not China, was the largest buyer of Philippine exports in the same month, accounting for $970.22 million or 15.8% of the country’s export value.

Despite their increasing tensions, economic ties with Beijing may still be “business as usual because China also needs continuing economic activity with other nations for its most important exports, such as the electric vehicles,” Terry L. Ridon, a public investment analyst, said in a Facebook Messenger chat.

“On infrastruc­ture, Beijing has failed to deliver on much of its infrastruc­ture commitment­s anyway, such that any further pause will be insignific­ant,” he added. “These commitment­s may also be undertaken by other developmen­t partners in the future.”

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