China, Philippines resume talk on South China Sea disputes

The Philippines is set to enter into a deal with China to jointly explore energy resources in the South China Sea

 Duterte has brought a large trade entourage with him to China Photo: AFP
Duterte has brought a large trade entourage with him to China Photo: AFP

The Philippines is set to enter into a deal with China to jointly explore energy resources in the South China Sea, called the West Philippine Sea in the Philippines, the Manila-based Inquirer newspaper reported on Wednesday morning, citing officials from Philippine President Duterte’s office.

According to the report, Philippine officials said they were in talks with their Chinese counterparts to finalise a deal that could see both sides working to find oil and natural gas in the South China Sea.

“What we are looking at is a deal that will first cover exploration activities in uncontested areas,” said an administration official.

The report comes as recently elected Philippine President Rodrigo Duterte cools relations with the country’s long-time ally, the US, and moves closer to Beijing.

Duterte took office shortly after The Permanent Court of Arbitration at The Hague issued a scathing report in July against China in favour of the Philippines over Beijing’s claim to more than 80% of the South China Sea, including areas within the Philippines’ UN-mandated exclusive economic zones (EEZ).

Up to and shortly after the ruling, Sino-US tensions worsened as Beijing accused Washington of meddling in its affairs by showing support for Manila.