Written by Kenji Tanaka, Asia Pacific Correspondent
MANILA — The Philippines expelled China’s consul general in Manila on Friday and ordered the immediate closure of China’s consulates in the cities of Davao and Cebu, escalating a diplomatic confrontation over a series of confrontations in the South China Sea that have tested the US-Philippines alliance and rattled regional markets.
“This is a direct violation of Philippine sovereignty and international law,” Foreign Secretary Sara Duterte said in a nationally televised statement, referring to China’s actions near Sabina Shoal and Second Thomas Shoal. The Chinese foreign ministry called the expulsion “a malicious provocation” and warned of “resolute countermeasures.” Beijing’s ambassador to Manila was summoned for the third time in a week.
China’s coast guard vessels used water cannons against Philippine resupply boats for the second time in 30 days, and a Chinese naval helicopter conducted what Manila called an “aggressive intercept” near the contested waters. Philippine President Ferdinand Marcos Jr. convened an emergency national security council meeting Thursday and ordered the coast guard to increase patrols.
The United States, Japan, and Australia issued statements supporting the Philippines’ right to free navigation. The US State Department reaffirmed that the US-Philippines mutual defence treaty covers Philippine vessels in the South China Sea. The US 7th Fleet confirmed two destroyers were conducting “routine operations” in the area.
“We will take all necessary measures to protect our core interests,” China’s foreign ministry said, accusing Manila of “dangerous provocation” backed by outside powers. Analysts say the move marks the most severe breakdown in Philippines-China relations since the 2016 South China Sea arbitration ruling.
Shipping insurance premiums for routes through the South China Sea rose by 18 percent this week, according to Lloyd’s of London, reflecting growing concern among underwriters about the deteriorating security environment in one of the world’s busiest shipping lanes.
The Philippines has filed more than 50 formal protests with Beijing over the past three months alone, according to Foreign Secretary Duterte, who described the relationship as “at its lowest point in modern history.” The ASEAN regional bloc has called for “maximum restraint” but has not issued a formal statement.
Markets reacted sharply: the Philippine peso fell 0.6 percent against the US dollar and the Philippine Stock Exchange index dropped 2.1 percent on Friday, its steepest single-day decline in three months. Analysts at Credit Suisse said the escalation had “materially increased the geopolitical risk premium” for Philippine assets.
Former Philippine foreign secretary Albert del Rosario said the expulsion was “long overdue” and urged the Marcos administration to take the matter to the International Court of Justice if China does not scale back its operations. The Philippines is expected to raise the issue at the next UN General Assembly session.
The US Congressional Research Service said it was monitoring the situation closely, noting that any armed confrontation between Philippine and Chinese vessels could trigger the mutual defence treaty’s “armed attack” clause, which would obligate Washington to come to Manila’s defence.
Sources: Reuters, AP, Philippines Daily Inquirer, South China Morning Post, BBC, ABS-CBN News.