Marcos Eyes China Energy Deals Despite South China Sea Tensions
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- Marcos said Friday that economic cooperation with China continues in many instances, including on energy supplies during Middle East conflict this year, and emphasized China 'is one of the biggest investors still in the Philippines.'
- Marcos pointed to potential joint energy exploration at the Reed Bank inside the Philippine exclusive economic zone, noting prior talks had broken down over sovereignty but saying discussions 'have moved forward' and 'all parties involved want it to succeed.'
- Recent South China Sea confrontations strained ties: a July clash at Second Thomas Shoal involving Chinese coast guard wielding wooden batons, a water-cannon incident near Scarborough Shoal days later, and Beijing's sanctions on the Philippine defence minister.
- Beijing claims sovereignty over nearly the entire South China Sea — a waterway carrying over $3 trillion in trade annually — despite a 2016 arbitration ruling in a Manila-brought case that invalidated those claims.
- Marcos rejected any special arrangement requiring the Philippines to seek Beijing's permission for South China Sea resupply missions, stating 'I don't think that's in any policy... that we are distancing ourselves from China.'
Why it matters: Reed Bank joint exploration talks, dormant for years over sovereignty disagreements, have moved forward under Marcos — and if a deal materializes, the Philippines would gain a concrete offshore gas supply outcome while testing whether Beijing and Manila can compartmentalize economic cooperation from territorial confrontation. Marcos is simultaneously affirming China's status as a top Philippine investor and insisting Manila's position has not weakened, a tight diplomatic balance given Beijing's recent sanctions on his defence minister.
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