17 August 2017

News Story: China May be Finished with Island-Building Campaign

China's Artificial Island built on Fiery Cross Reef
On Tuesday, Philippines defense minister Delfin Lorenzana announced that Manila has reached an understanding with Beijing about Chinese expansion in the South China Sea, and that China has promised not to seize any additional land features in the region. "The Chinese will not occupy new features in the South China Sea nor they are going to build structures in Scarborough Shoal," he told a congressional hearing.

China has built a string of seven artificial islands in the Spratly chain, all of them on land features claimed by the Philippines and other nations. The government of former Philippine president Benigno Aquino opposed Chinese expansion in the region, but under the current leadership of President Rodrigo Duterte, Manila has downplayed the dispute in favor of strengthening economic ties.

Also on Tuesday, foreign secretary Alan Peter Cayetano said that the Philippines is pursuing an oil and gas exploration agreement with China in disputed parts of the South China Sea, with revenues to be split 60/40 in favor of the Philippines. Last week, Cayetano admitted that there could be sovereignty issues for a partnership with China in contested waters, noting that the joint venture would have to be within a framework that would be consistent with the Philippine constitution.

Read the full story at MarEx