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

Zahira Khan is a research analyst based in Pakistan.

Published: 5:30am, 1 May 2024Updated: 6:00am, 1 May 2024

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.