The South China Sea Dispute: implications on the national economy of the Philippines

Abstract

The South China Sea is a marginal sea of the Pacific Ocean, which is an important source of revenue and livelihood for its littoral countries, including China and the Philippines. China and the Philippines have overlapping territorial claims on maritime features (e.g islands, islets, and reefs) of the Kalayaan Island Group and Panatag Shoal (Scarborough Shoal) due to China's assertion of the nine-dash line and the Philippines' sovereign rights granted by the United Nations Convention on the Law of the Seas (UNCLOS). These maritime features are known to have rich fishing zones, which are subject to fishing dispute between fisherfolks of different countries. Aside from its valuable fisheries, it is known to be a potential source of hydrocarbons (e.g oil and natural gas). The South China Sea is a super maritime highway, with over US$ 3.37 trillion worth of trade traversed its waters in 2016. As the maritime dispute in the South China Sea endures, different sectors of the national economy felt its ramifications. Filipino fisherfolks have been harassed by Chinese fisherfolks and the Chinese Coast Guard. Duterte's negotiated subservience with China's demand have created an influx of Chinese loans and development aid, which may potentially be a tool for seizing our natural resources including those in dispute maritime features. The study aims to recommend a pro-people policy on the South China Sea. The national interests of the Philippines on the West Philippine Sea should be pursued to satisfy the needs of its people.