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                  Philippines-China Relations Still Important

   by Idrees Ali

   Even though tensions over the disputed islands in the South China Sea
   have recently been heightened, analysts believe countries in the region
   face a conundrum: speaking out aggressively against China while at the
   same time improving economic ties with the Asian giant.
   The recently concluded Shangri-La Dialogue in Singapore saw a flurry of
   diplomatic activity related to the South China Sea dispute.
   U.S. Secretary of Defense Ashton Carter announced the launch of a new
   Southeast Asia Maritime Security Initiative and, only weeks before,
   reports showed China taking a more assertive stance in building islets
   on the disputed islands.
   In an interview with VOA, the Philippine ambassador to the United
   States, Jose Cuisia, said the South China Sea dispute Is important for
   the Philippines, a treaty ally of the United States.
   "Well it is clearly one of our top foreign policy priorities because
   our economic prosperity also depends on peace and stability being
   maintained in the region, and because of this conflict in the South
   China Sea, which is clearly a threat to our security...we of course
   hope that this conflict can be resolved peacefully in a manner that is
   in consonance with international law," said Cuisia.
   Last year, the U.S. and the Philippines signed an agreement known as
   the Enhanced Defense Cooperation Agreement that would allow the U.S. to
   rotate troops in the Philippines.
   The ambassador said it would help create a minimum credible deterrence
   posture.
   "As far as the Philippines is concerned, it will help us in terms of
   building capacity particularly in terms of maritime domain awareness,
   maritime security, as well as enhancing our capabilities in terms of
   humanitarian assistance and disaster relief," he said.
   While the Philippines has been vocal in its criticism of China in the
   South China Sea, analysts believe the Philippines is trying to balance
   the rhetoric so as to not harm trade between the two countries.
   China has been among the largest trading partners for the Philippines.
   Between 2012 and 2013, exports to China grew by nearly 14 percent while
   imports from China grew by more than 20 percent, according to the
   Philippine Statistics Authority.
   In the first semester of 2014, Philippines imported the most from
   China, far outstripping imports from the United States.
   Donald Emmerson, director of the Southeast Asia program at Stanford
   University, said the South China Sea dispute allows some countries to
   unfairly gain from the security provided by the U.S.
   "Well, frankly at the risk of sounding a little bit cynical it seems to
   me that for some Southeast Asian [countries] the presence of the 7th
   Fleet, the American naval presence in those waters provides an
   assurance on the security side that enables these countries to go to
   Beijing and make money," said Emmerson.
   According to Richard Heydarian, an assistant professor at De La Salle
   University in Manila, there is a growing realization in the Philippines
   about the importance of the Chinese market.
   "There's a sense that China is the only country that can provide
   capital and technology on a wide and affordable scale that could
   significantly change infrastructure [of] the Philippines and help the
   Philippines truly become a first tier emerging market economy in the
   coming decades," said Heydarian.
   Another reason analysts believe the Philippines could soften its stance
   towards China is the upcoming presidential elections.
   Ernest Bower, the Sumitro Chair for South Asia Studies at the Center
   for Strategic and International Studies, said a change in
   administration could lead to that change.
   "The front runner is his vice president - a guy named Jejomar Binay.
   And Binay by all accounts and by research we know is being courted by
   Chinese diplomats and being offered all sorts of incentives to steer
   the Philippines back towards a more moderate role to accommodate
   China's rise, particularly in the South China Sea. That won't be a
   popular position," said Bower.
   The Philippines also is dependent on China. A Chinese state-owned
   corporation owns a 40 percent stake in the National Grid Corporation of
   the Philippines.

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   [1]http://www.voanews.com/content/philippines-china-relations-still-imp
   ortant/2805378.html

References

   1. http://www.voanews.com/content/philippines-china-relations-still-important/2805378.html