If you follow geopolitical news on a daily basis, you must have understood one thing for sure: the importance of South China Sea under the Indo-Pacific. Countries across the globe are engaged in making policies cantered around the Indo-Pacific region, whether through QUAD, IPEF, AUKUS, or other trilateral and multilateral alliances. While trade and supply chains are the key issues for such an approach, countering China is the prime aim.
Since the South China Sea region is in the vicinity of the Indian Ocean, India’s concern becomes even more crucial. The relationship between India and China has long been sour, and the Indo-Pacific angle only exacerbates it. China tries to debt-trap India’s neighbours so as to use them as a front against India in the future.
So, India’s approach to the ASEAN countries gains immense significance. This was evident in the formation of BIMSTEC and the Act East policy. While India is dealing with ASEAN countries through yearly summit-level meetings, the nation also strengthens bilateral relations with each member.
In line with that, India is also strengthening its relations with the Philippines. And, this has great significance not only in a bilateral context but also in the context of Indo-Pacific and South China Sea. So, let us understand every aspect of Indo-Philippines relations.
Grant Assistance to boost ties
Last month, an agreement regarding Indian grant assistance for the implementation of Quick Implementation Project (QIP) was signed. The agreement was signed by Benjamin C. Abalos, Jr., Secretary of the Philippine Department of the Interior and Local Government (DILG), and Shambhu S. Kumaran, Ambassador of India to the Philippines. While speaking on the occasion, Shambhu S Kumar described the agreement as a milestone in bilateral relations, as he believes it will mark the beginning of people centric partnership in the Indo-Pacific region.
The Agreement offers a structure that makes it possible for Indian grant aid to be used to carry out small projects for the socioeconomic development of the Philippines. This will include the creation and improvement of social infrastructure, as well as physical infrastructure.
The aim is to implement a number of projects, each valued at approximately US$50,000, that will have a swift and positive impact on local communities in various provinces and cities throughout the Philippines.
A Joint Project Selection Committee, comprised of officials from both governments, will be established. Its duties will include receiving project applications, establishing criteria, evaluating project proposals, awarding grants, and overseeing the execution of projects.
Now, you may think that India is doing the same thing in the South China Sea as China is doing in the Indian Ocean. However, I beg to differ. The policy that China uses is that of a debt-trap, which means it provides debt and makes the host economy fragile and then leases its ports and land. While India’s project will actually provide a legal framework that will enable India’s extensive and diverse development expertise to be shared with the Philippines. In addition, the choice of QIPs would be based on the priorities of the Philippine government only. So, India’s policy is not a debt-trap, but a helping hand. Now, let us understand the Indo-Philippines relations.
India-Philippines relations overview
India and the Philippines are two nations that have historically shared strong ties. Both nations are members of the Asia-Pacific Economic Cooperation (APEC), and have cooperated on several fronts, including trade and security. In recent years, the relationship between the two nations has only grown stronger, with both nations recognizing the strategic importance of deepening ties.
The two nations share a common interest in preserving freedom of navigation and upholding the rule of law in the region, which is essential for economic growth and stability. India and Philippines have also signed several agreements to enhance security cooperation. This includes the Memorandum of Understanding on Defence Cooperation in 2006, which established a framework for defence exchanges and cooperation.
In 2019, bilateral trade between the two nations reached $2.7 billion. India is one of the largest investors in the Philippines, with Indian companies investing in sectors like pharmaceuticals, IT, and BPO. In 2018, the Philippines became the largest source of tourists to India from the ASEAN region, and the number of Indian tourists visiting the Philippines is also increasing.
India has a very clear idea when it comes to the South China Sea. It wants to maintain the free flow of trade in the region, and for this, there is a prerequisite of restricting Chinese influence in the region. This is not only a requirement for peace in the Indo-Pacific, but also in the Indian Ocean. Additionally, if the Philippines were to fall after Laos and Cambodia into the clutches of China, it could create a domino effect. That is why India does not want the Philippines to gravitate towards China.
Along with that, India wants to increase its reach in the region so that, on the one hand, it can act as a deterrence to China, while on the other hand, increase the trade and opportunities for Indian companies to expand in the region. This will ultimately end up in strengthening of bilateral relations between both the countries.
Although there is a caution for India when it comes to the Philippines. The government in the Philippines is under Marcos Jr., who is considered a supporter of China. During his election campaign, he announced that he would turn the focus of the military to internal conflicts.
But as far as current trends are concerned, such as the laser incident, it appears that the President of the Philippines has had a change of heart.
China and Indo-Pacific
When we examine China’s policy towards ASEAN countries, we can see that the trade route of the Indo-Pacific region accounts for almost 50 per cent of global merchandise trade and 60 per cent of global GDP. Additionally, it not only connects the Pacific Ocean to the Indian Ocean, but also connects the Gulf, which is a significant source of crude oil. Interestingly, China imports 80 per cent of its oil through the Malacca Straits in the Indo-Pacific region. Being dominant in such a region would give China a significant advantage, potentially allowing it to become the master of 50 per cent of global trade.
The ASEAN countries, which are by and large united, have faced internal conflicts. Laos and Cambodia are under the clutches of China due to heavy debts, which has made them voiceless when it comes to speaking out against China’s undemocratic practices in the region. Currently, the Philippines is the only country that is blatantly countering China’s foul play in the region, and China is eyeing to take the Philippines under its control.
Philippines and China
The Philippines and China have been in disputes over the sovereignty of certain islands and shoals in the Spratly Islands. The 2019 Reed Bank incident almost brought bilateral relations to an end, and just yesterday, Chinese coast guard vessels used military-grade lasers to try to block a Philippines ship in the South China Sea. As a result, the Philippines government has summoned the Chinese envoy. The incident has the potential to disrupt the territorial sovereignty of the Philippines.
Since the independence of Philippines, it was always concerned more about its internal security than the external security. This started to change post 2011, when it started witnessing the impacts of China’s maritime expansion. Renato Cruz De Castro, a professor of international studies at De La Salle University in Manila, says that in the past, the Philippines followed an appeasement policy towards China. In fact, China was considered one of the country’s best friends. However, this changed in just a couple of years due to China’s maritime expansion policy.
Growing India Philippines ties
The recent agreement is just one aspect of the web of bilateral ties. In January, the President of the Philippines extended e-visas to include Indians, as part of an effort to increase people-to-people ties.
The defence relations between India and the Philippines are also strengthening. The BrahMos supersonic cruise missile from India has received its first international purchase order from the Philippines, which is a significant step for the country. This will be the first time that the armed forces of the Philippines will be acquiring this type of weapon system.
This comes at a time when relations between China and ASEAN countries have deteriorated. Among other countries, the Philippines is also interested in purchasing the Light Combat Aircraft (LCA) Tejas for its air force arsenal.
According to Professor Renato, the undemocratic regime change in Myanmar is an example of the ASEAN’s incapability. To counter belligerent China, the Philippines needs a platform like the QUAD to be set up.
The Indo-Pacific policy in general and South China Sea in particular are a pivot to global domination. While countries like China want to exploit it, countries like India want to make it a peaceful zone for global trade and cooperation. Under the framework of BIMSTEC, India has reached out to Myanmar and Thailand, and now it is strengthening its bilateral relations with the Philippines. By doing so, it is clear that the Philippines is at the center of India’s South China Sea strategy.
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