The Philippines' Economy
Fishing, the South China Sea and the Economy
How disputes with China over the West Philippine Sea affect Philippine fishers, energy exploration and trade, and the 2016 arbitration ruling.
The Philippines disputes parts of the South China Sea with China; Manila calls its area the West Philippine Sea.
Economic stakes
- Fisheries: many coastal families depend on fishing.
- Oil and gas: fields like Malampaya supply gas for power in Luzon, and new exploration is disputed.
- Shipping lanes: a huge share of world trade passes through.
The 2016 ruling
In July 2016, an arbitral tribunal under the UN Convention on the Law of the Sea ruled in favour of the Philippines, rejecting China’s broad “nine-dash line” claims. China rejected the ruling.
Tensions
Confrontations at shoals like Scarborough and Second Thomas Shoal affect fishers’ access.
Malampaya depletion
The Malampaya gas field is declining, raising energy security concerns, and new fields lie in disputed waters.
Economic diplomacy
The Philippines has balanced trade with China and security ties with the US, Japan and others.
India’s link
India sold BrahMos missiles to the Philippines in 2022, partly for coastal defence.
A fisherman from Zambales can no longer reach traditional fishing grounds near Scarborough Shoal, reducing his catch and income.
They affect fishing, energy and livelihoods.
- The Philippines disputes waters with China.
- Fisheries, gas and shipping are at stake.
- A 2016 tribunal ruled for the Philippines; China rejected it.
- The Malampaya gas field is declining.
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