Not out of desperation
The Philippines, which imports almost all of its petroleum product requirements from the Middle East, last week became the first country to declare a national energy emergency following the latest war in the volatile region that constricted global fuel supply thus causing local fuel prices to practically double in a month.
And with the conflict entering its second month with no clear sign of de-escalation on the horizon, the prospect of altogether running out of fuel that powers the Philippine economy has become all too frighteningly real.
Urgently needed help, however, may just come from an unlikely source: China.
Last week, the Philippines and China resumed high-level talks that covered the possibility of joint oil and gas exploration and fuel and fertilizer supply to ease the burden on Filipinos already buckling under the weight of surging oil prices.
The talks–the first since 2025–came after President Marcos broached the possibility of a reset in the country’s fraught ties with China, saying that the oil price shock following the unexpected war in Iran could provide the “impetus for both sides to come to an agreement” after years of tensions stemming from Chinese repeated incursions into Philippine territory in the South China Sea.
Aggressive actions
“Everything that might be of help, we are certainly pursuing,” said Mr. Marcos.
That determination to seize all opportunities to shore up fast-thinning oil reserves is certainly called for. However, the scramble for additional fuel from outside the usual sources in the Middle East should not mean compromising on Philippine sovereignty over its internationally recognized exclusive economic zone that China, however, has been loathe to honor.
And so far, the Philippines has been firmly standing its ground. The Department of Foreign Affairs (DFA) said in a statement last Saturday that the two sides that took part in the just concluded Bilateral Consultative Mechanism (BCM) on South China Sea meeting in Fujian, China on March 28 had a “frank and thorough exchange of views.” Manila “firmly reiterated” its position and again raised its grave concerns over China’s aggressive actions that have “disrupted lawful activities and posed risks at sea.”
“The Philippines emphasized the need for diplomacy and communication for managing differences at sea, and upholding international law, particularly the 1982 Unclos (United Nations Convention on the Law of the Sea) and the 2016 South China Sea Arbitral Award,” the DFA added.
The BCM was held back-to-back with the 24th Foreign Ministry Consultations between the Philippines and China, during which the Philippine delegation led by Foreign Affairs Undersecretary Leo Herrera-Lim emphasized to his counterpart, Chinese Vice Foreign Minister Sun Weidong, the country’s openness to advance “mutually beneficial cooperation, especially in the economic and people-to-people areas” with the world’s second largest economy.
Dialogue and diplomacy
Both engagements, the DFA said, are in line with the President’s directive to pursue dialogue and diplomacy with China while protecting the Philippine sovereignty and national interest.
Both sides openly discussed the need to stabilize access to energy and fertilizers and potential cooperation in oil and gas exploration, trade, agriculture, and renewable energy at this time of severe economic and geopolitical disruptions brought about by the unilateral attack on Iran by the United States and Israel.
The Philippines and China will convene a bilateral foreign ministers’ meeting “within the year” as a follow-up to these latest talks. Going by the public statements, the bilateral discussions–the first expansive conversation since March of 2023–had been certainly productive.
But the Philippines should not be lulled into complacency, as the country has been down this road before, where what was said by the Chinese counterparts did not necessarily translate into actions that benefitted the Philippines.
Wishful thinking
Already, Weidong had called for “concrete actions” from the Philippine side to improve strained relations with no outright acknowledgment of the Philippines’ arbitral win and legitimate grievances over incidents such as “dangerous maneuvers” in the West Philippine Sea, harassment of Filipino fishermen, and the use of powerful water cannons against Philippine boats involved in resupply missions.
Clearly, an immediate resolution to the issue on territory may be wishful thinking but the Middle East crisis that poses an immediate risk to global growth may just lead to a meeting of the minds on areas that have taken on greater urgency and are of ultimately mutual benefit, such as energy security.
As the Federation of Filipino Chinese Chambers of Commerce and Industry, Inc. said, a pragmatic approach and practical cooperation in energy security “offers a viable pathway to securing a stable, affordable and sustainable energy future.”
The Philippines must just ensure that it approaches potential talks with China from a position of strength, not desperation.
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