Removal Of US May be an Agreement of Ph and China, Ph President just Implemented it-Analyst

President Duterte's shift to China and Removal of US may be an agreement just implemented.

Philippines' Duterte says Xi offering gas deal if arbitration case ignored

MANILA (Reuters) - Philippine President Rodrigo Duterte said his Chinese counterpart has offered Manila a controlling stake in a joint energy venture in the South China Sea, if it sets aside an international arbitral award that went against Beijing.

Duterte said Chinese President Xi Jinping told him during their recent meeting that if he ignored the Permanent Court of Arbitration’s 2016 ruling, China would agree to be the junior partner in a joint venture to develop gas deposits at the Reed Bank, located within Manila’s Exclusive Economic Zone (EEZ).

“Set aside the arbitral ruling,” Duterte was quoted as telling reporters late Tuesday in remarks provided by his office on Wednesday.

“Set aside your claim,” he said, quoting Xi. “Then allow everybody connected with the Chinese companies. They want to explore. If there is something, they said, we will be gracious enough to give you 60%, only 40% will be theirs. That is the promise of Xi Jinping.”

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Any agreement to forget the arbitral award and team up with China would be a major setback to other claimants, especially Vietnam and Malaysia, which like the Philippines have experienced repeated challenges from China’s coastguard inside their EEZs.

The United States has called that bullying and coercion aimed at denying rivals’ access to their energy assets.

Duterte did not say if he had agreed to Xi’s offer, but said the part of the arbitral award that referred to the EEZ “we will ignore to come up with an economic activity”.

The tribunal said the Philippines had legal rights to exploit gas deposits that China also claims at the Reed Bank, about 85 miles (140km) off the Philippine coast.

The Philippines only accessible gas resources at the Malampaya fields are set to run out by 2024.

A joint project with China has been talked about for decades, but has gone nowhere because of the competing claims. Joint activity could be deemed as legitimizing the other side’s claim, or even relinquishing sovereign rights.


Duterte aligns Philippines with China, says U.S. has lost

BEIJING (Reuters) - Philippine President Rodrigo Duterte announced his “separation” from the United States on Thursday, declaring he had realigned with China as the two agreed to resolve their South China Sea dispute through talks.

Duterte made his comments in Beijing, where he is visiting with at least 200 business people to pave the way for what he calls a new commercial alliance as relations with longtime ally Washington deteriorate.

“In this venue, your honors, in this venue, I announce my separation from the United States,” Duterte told Chinese and Philippine business people, to applause, at a forum in the Great Hall of the People attended by Chinese Vice Premier Zhang Gaoli.

“Both in military, not maybe social, but economics also. America has lost.”

Duterte’s efforts to engage China, months after a tribunal in the Hague ruled that Beijing did not have historic rights to the South China Sea in a case brought by the previous administration in Manila, marks a reversal in foreign policy since the 71-year-old former mayor took office on June 30.

“I’ve realigned myself in your ideological flow and maybe I will also go to Russia to talk to (President Vladimir) Putin and tell him that there are three of us against the world - China, Philippines and Russia. It’s the only way,” Duterte told his Beijing audience.


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