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Subject

The South China Sea dispute.

Significance

China and the United States increased their military activities in the South China Sea in January and February, with US ‘freedom of navigation operations’ (FONOPs) pushing back on Chinese maritime jurisdictional claims in the area. The Philippines before June 2016 contested China’s expansive claims. Increased rivalry between Beijing and Washington in South-east Asia raises the risk of a dangerous naval confrontation.

Impacts

The Philippines will continue to solicit investment from China.

China is unlikely to undertake actions in the South China Sea that would seriously irk the Philippines.

South-east Asian countries will emphasise the importance of the region not becoming a theatre for China-US rivalry.

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