China Assures Philippines No New South China Sea Occupations Amid Oil Deal Talks

China has assured the Philippines that it will not occupy new features or territory in the South China Sea under a new status quo brokered by Manila. The assurance comes as the two countries work on a commercial deal to explore and exploit oil and gas resources in disputed areas of the strategic waterway.

The Philippines aims to begin drilling in the South China Sea within a year under the proposed energy deal with China. However, the agreement is complex and sensitive as both nations claim the oil and gas reserves. The Permanent Court of Arbitration in The Hague invalidated China's claim over most of the South China Sea in 2016, but Beijing has refused to recognize the ruling.

Despite the arbitration decision, the Philippine energy department plans to resume drilling for oil and gas on the Reed Bank, which is within the Philippine Exclusive Economic Zone (EEZ), before the end of 2024. New blocks will be offered to investors in a bidding in December. Some minority lawmakers in the Philippines oppose the plan for an energy deal, arguing it would be illegal and contrary to the Philippine constitution.

The Philippines is also seeking to bolster its military readiness amid the tensions with China. It plans to purchase more defense systems from Israel, including missiles, sensors, advanced command-and-control systems, and long-range radars. This move comes in response to a series of maritime clashes between Chinese vessels and Philippine boats, where Chinese Coast Guard ships have engaged in dangerous blocking maneuvers and used water cannons against Philippine vessels, causing damage.

In recent weeks, the Philippines has detected an increased presence of Chinese maritime militia vessels in the West Philippine Sea, coinciding with the annual Balikatan military exercises between the Philippines and the United States. Philippine Navy Commodore Roy Trinidad reported that 124 Chinese vessels had been detected in the area since Monday, compared to an average of 60 per week in the previous two months. A retired US Air Force officer suggests the increase may be due to the Chinese Coast Guard becoming more detectable, as they often operate 'dark' by turning off their automatic identification system (AIS) signals.

Why this matters: The South China Sea dispute has far-reaching implications for regional stability, freedom of navigation, and access to vital energy resources. As tensions escalate between China and Southeast Asian nations, the risk of military confrontation rises, threatening peace and economic growth in the region.

Philippine President Ferdinand Marcos Jr. has described the South China Sea issue as "very dynamic and constantly in flux." He stated, "We have to be aware that that area is disputed. We have to be aware that there are overlapping claims not only from the Philippines and China but other ASEAN member countries as well." As the Philippines balances its economic interests with China against the need to defend its territorial claims, the outcome of the proposed energy deal and the effectiveness of its military upgrades will shape the future of the South China Sea dispute.

Key Takeaways

• China assures no new territorial claims in S. China Sea to Philippines.
• Philippines aims to resume drilling in Reed Bank within a year under energy deal with China.
• Philippines seeks to bolster military readiness, purchasing Israeli defense systems.
• Increased presence of Chinese maritime militia vessels detected during US-Philippines military drills.
• South China Sea dispute threatens regional stability, navigation, and energy access.