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Philippines locks in enhanced defense deal with US to deter China
Manila’s top defense official Gilberto Teodorosigned a treaty with the US on Monday that will allow the Philippines to access more closely-held military intelligence and purchase more advanced technology to defend itself from China. US Defense Secretary Lloyd Austin said the agreement was meant to display Washington’s commitment, saying, “We are more than allies. We are family.”
Unlike some other US allies, Manila feels quite confident that its relationship with Washington will stay strong under incoming President Donald Trump. Trump and Filipino President Ferdinand Marcos, Jr. spoke over the phone on Tuesday about strengthening the alliance, which Marcos said was “very productive.”
Trump is pledging a hawkish approach to China, and the Philippines is eager to upgrade its own defenses given ongoing conflicts over the South China Sea. The strong alignment on shared interests and Marcos’praise for Trump’s “robust leadership” seem promising, as long as he can make the case to Trump that the US is coming out ahead in the transaction.
How is China preparing for Trump? President Xi Jinping attempted to set boundaries in the relationship at the Asia-Pacific Economic Cooperation summit in Peru over the weekend. He drew “four red lines” for Trump to avoid: undermining the Communist Party, pushing China toward democracy, stifling China’s economic rise, and encouraging Taiwanese independence.
“These are the most important guardrails and safety nets for China-US relations,” he said. But with Trump promising punitive tariffs up to 60% on Chinese goods, and appointing China hardliners like Marco Rubio and Mike Waltz, confrontation looks likely.
China and the Philippines play a dangerous game of bumper boats
On Sunday, Filipino and Chinese vessels collided for the second time in a week at the Sabina Shoal, a disputed area of the South China Sea. This latest clash occurred less than a month after Manila and Beijing signed a deal meant to avoid confrontation and escalation risk around the South Thomas Shoal. Chinese forces also fired flares at an airplane from Manila’s fisheries regulation agency on Saturday, and a Chinese fighter jet buzzed the same plane on Aug. 19.
Why the flare-up? The proximate cause seems to be Manila’s deployment of a coast guard ship to the waters around Sabina Shoal, an uninhabitable reef well within the Philippines’ exclusive economic zone. But Beijing still claims “indisputable” sovereignty there and may be worried about Manila attempting to set up some sort of semi-permanent base, as it did on the South Thomas Shoal by beaching an old ship on the rocks in 1999.
Beijing and Manila both recognize the risks of testing each other’s boundaries — and Washington has been clear it will back its longstanding ally if called upon to protect it from China. Even so, Eurasia Group’s Jeremy Chan says the likelihood of the invocation of the US-Philippines Mutual Defense Treaty “is quite low, as the actions by the China coast guard vessels do not rise to the level of a ‘direct attack’ on a Philippine vessel and no injuries have been reported by either side.” It also means Beijing is “steering clear of the red lines established by Philippine President Marcos, and Manila has little interest in escalating tensions in the near term,” Chan adds.Philippines successfully conducts resupply through disputed sea under new deal
On Saturday, Filipino vessels carried food and supplies to the Second Thomas Shoal, a disputed atoll in the South China Sea that has been the source of severely strained relations with Beijing in recent months. Manila deliberately beached a ship called the Sierra Madre on the Second Thomas Shoal in 1997 to effectively control it and now must regularly resupply Marines based there.
The mission represents an early success for the recently signed deal between China and the Philippines intended to cool temperatures in the region and preserve the status quo through better coordination and communication.
Manila and Beijing’s coastguards reportedly communicated about the mission in advance, and Chinese ships did not shadow or intercept the Filipinos as in past attempted resupply missions.
While details about the deal have not been made public, both sides passed the first test with flying colors. Confrontations between Manila and Beijing had been posing a serious risk of escalation – and such encounters could spiral quickly given the longstanding mutual defense treaty between the US and the Philippines.
US Secretary of State Antony Blinken applauded the peaceful coordination and said the US “[expects] to see that it continues going forward.”China and Philippines sign South China Sea deal
Manila announced Sunday it had reached a “provisional agreement” with Beijing aimed at establishing an arrangement in the South China Sea that both sides can live with — without renouncing territorial claims. The text of the deal has not yet been released.
The agreement builds off last week’s announcement of the establishment of presidential hotlines and signals a desire for de-escalation by both countries – following a serious clash on June 17. But the key word in this agreement is “provisional” as both Beijing and Manila are already showing irreconcilable differences in their positions.
China had previously told Manila it could not bring construction materials to the wreck of the Sierra Madre, a decrepit hulk deliberately beached on the South Thomas Shoal by Manila to give it de facto control. Without repairs, the ship will likely break apart soon. But Beijing claims Manila agreed to give China advanced notice and allowed inspections of shipments sent to the marines it keeps stationed there carrying food and supplies. A senior Filipino official told the Associated Press that the final deal did not require the Philippines to pre-notify the Chinese of shipments.
What to watch? A deal to cool temperatures in the South China Sea would be welcome news for all parties, including the US. “The next big test,” says Eurasia Group senior China analyst Jeremy Chan, “will be how both Manila and Beijing behave on future resupply missions, and whether either side can cede any ground.”
Can a hotline prevent war in South China Sea?
I know when that hotline bling, that can only mean one thing: Beijing and Manila are beefing over uninhabitable rocks again. China and the Philippines have reportedly set up a bilateral hotline meant to help them avoid a deadly incident in the disputed South China Sea.
The effort to improve communications follows a particularly violentconfrontation on June 17, when Chinese sailors surrounded and boarded Filipino vessels wielding bladed weapons. One Filipino sailor lost his finger, and the fear is that should someone lose their life, Manila could activate its mutual defense treaty with the United States.
The Biden administration has struck a nuanced position, assuring Manila that it would honor the treaty fully while also attempting to signal to China that they aren’t handing out carte blanche to the Philippines. Eurasia Group’s Jeremy Chan says proactive communication after the June 17 incident has helped lower the temperature.
“Beijing interpreted the June 28 call between Deputy Secretary of State Kurt Campbell and China's Vice Foreign Minister Ma Zhaoxu in particular as a clear signal that Washington does not support Manila in pushing its territorial claims too aggressively,” he said.
Being able to quickly pick up the phone and talk through future incidents is a useful pressure release valve, but longer term, the South China Sea and the shoals used to mark de facto control will remain a tension point. We are watching how it will affect US and Chinese efforts to stabilize their own relationship.
China tells NATO to butt out
China’s foreign ministry on Thursday warned NATO not to bring “chaos” into Asia and accused the alliance of seeking security at the expense of other countries after it labeled Beijing a “decisive enabler” of Russia’s war on Ukraine. The foreign ministry’s comments come amid increasing cooperation between NATO and US allies in the Pacific, particularly Japan, South Korea, and the Philippines.
Washington and its allies accuse China of helping Russia skirt arms controls by shipping so-called “dual use” goods that can be applied in both civilian and military contexts. In turn, China gets access to heavily discounted Russian oil and gas — a desirable asset at any time, but advantageous for China’s economy at a moment when it appears particularly shaky.
At home, however, Beijing has signaled not to expect “strong medicine” to boost the economy at next week’s upcoming Third Party Plenum, scheduled for July 15-18 behind closed doors.
These meetings are closely watched because past leaders have used them to deliver big news. Deng Xiaoping announced the earth-shaking “Opening and Reform” policy, for example, at the 1978 session.
Xi Jinping isn’t expected to announce any major policy shifts, according to experts at Eurasia Group. So we’ll be watching for language intended to boost consumer confidence battered by the roiling debt crisis, but little by way of decisive policy.Can Japan afford to muscle up?
Japan and the Philippines signed a new defense pact on Monday, allowing the mutual deployment of forces to each other’s territory for training – part of a larger mutual effort to stave off China. But while Tokyo’s diplomats are sealing deals with much-needed allies, its defense officials are stressing that a weak yen threatens to eat up their budgets.
Before the Filipino deal, Prime Minister Fumio Kishida reached similar defense agreements with Australia and the UK, and he has established historically warmer ties with South Korea, improving political and military cooperation. He is also trying to double defense spending by 2027, which would make Japan the world’s third-largest military spender. So why is Tokyo slashing orders for new airplanes and warning of more cuts?
Manila-Beijing talks: Can they agree over South China Sea clashes?
Representatives from China and the Philippines met for crucial talks in Manila on Tuesday to put some guardrails on escalating tension in the South China Sea following a serious confrontation last month. Three of Manila’s ships were damaged on June 17 when Chinese sailors surrounded and boarded them while wielding edged weapons, and one Filipino sailor lost a finger.
Manila had hoped China would promise to pay for the damage they caused during the most recent incident. But the meeting ended without any substantial agreement beyond affirming a joint “commitment to de-escalate tensions without prejudice to their respective positions.”
Still, Washington is likely relieved both sides agreed to keep talking about ways to tone down the increasingly violent confrontations. The US has repeatedly warned China that it will honor its mutual defense treaty obligations to the Philippines if needed.
Neither side wants war, but both Beijing and Manila see the South China Sea issue as one of core sovereignty – both sides feel this is their territory – and don’t find much room for compromise. We’ll be watching any future negotiations that might keep a lid on things until the US election in November, which could cause strategic re-evaluations if Donald Trump wins.