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Significance

China, Taiwan and a handful of South-east Asian countries, including the Philippines, have competing claims in the South China Sea. The US-Philippine Mutual Defense Treaty (MDT) is a restraining factor regarding Chinese assertiveness towards the Philippines.

Impacts

China’s use of grey-zone tactics is unlikely to bring the MDT into play.

Occasional flare-ups may occur between China and the other South-east Asian claimants over fishing rights and offshore energy activities.

The South-east Asian claimants will defend their sovereign rights and avoid negotiating joint development projects with China.

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