Philippines Optimistic About Economic Cooperation with China Despite South China Sea Dispute

President Ferdinand Marcos Jr. expressed optimism that the Philippines and China can continue to work together economically, including in joint energy exploration. The statement was made despite the heated dispute between Manila and Beijing in the South China Sea.

Marcos Jr. made the remarks on Friday (14/08) at an event attended by foreign journalists in Manila. He cited numerous examples of ongoing cooperation, including energy supply during the conflict that erupted in West Asia (the Middle East) in 2026.

“I don’t think there’s any policy statement that says we are distancing ourselves from China,” Marcos said. “We continue to find many, many examples of very close cooperation with China. China remains one of the largest investors in the Philippines.”

Relations between the Philippines and China have been strained for years, and the dynamic was recently tested again through a series of confrontations in the South China Sea. These included a clash at Second Thomas Shoal in July 2026 involving coast guard personnel using wooden sticks and a water cannon incident near Scarborough Shoal days later, as well as sanctions imposed by Beijing on the Philippine defence minister.

Regarding energy exploration, Marcos Jr. said the Philippines needs a secure energy supply and noted there are offshore gas reserves that can be utilised. These reserves include the Reed Bank, an underwater shoal located within the Philippines’ exclusive economic zone. The two countries have long discussed the prospect of joint exploration, but talks have repeatedly stalled due to differences over sovereign rights.

“We have to find new ways… these discussions are moving forward and at this point, I think we have made progress,” Marcos said.

“The impression I get is that all parties involved want this to succeed, and that is always a very good sign.”

Marcos Jr. also stressed that the Philippines’ position has not weakened. He asserted that there is no special arrangement with Beijing requiring Manila to seek permission for resupply missions or logistical operations in the South China Sea. He previously condemned China in a state of the nation address on 27 July 2026, stating that the Philippines would uphold the 2016 Arbitral Ruling that invalidated China’s claims and that Filipinos “will not yield” to a conqueror.