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The Philippines, the United States, Canada, and Australia have started their first joint naval exercise today in the South China Sea to enhance mutual interoperability. The armed forces of the four countries announced it in a joint statement. The note reiterates the common commitment to protect freedom of navigation in the South China Sea and specifies that the forces involved in the maneuver will operate in Manila’s exclusive economic zone within a radius of 200 nautical miles from the Philippine coast. The exercise will last for two days and will involve naval and air units; last week, the Philippines conducted their first joint air and naval exercise with Japan in the same waters.

The waters of the South China Sea have been a battleground for a bitter territorial conflict between China and the Philippines, punctuated by numerous incidents in recent months in a basin through which over 60 percent of global maritime trade, worth approximately $5.3 trillion annually, and 30 percent of China’s foreign trade passes. Beijing claims almost all of this area based on the “nine-dash line,” which has delineated the part of the sea that China considers under its sovereignty since the 1940s.

Opposing China’s claims are Taiwan and all the coastal countries: Vietnam, Malaysia, Indonesia, Brunei, and the Philippines. With China’s growing international ambitions under Xi, Beijing’s aggressiveness has also increased, leading to a militarization race in many atolls and reefs in these waters. There have been more incidents and risks of confrontations between military and civilian ships of the coastal countries. In recent months, such incidents involving Chinese and Philippine coast guard vessels have become more frequent.

On June 17th, Chinese coast guard vessels intercepted Philippine boats engaged in a resupply mission near the Spratly Islands, sparking a skirmish that resulted in a Manila soldier’s injury. According to reports from Manila’s security sources, Filipino sailors were harassed while en route to deliver supplies to soldiers stationed on the Brp Sierra Madre, a World War II warship that ran aground in the Second Thomas Shoal in 1999 and has since served as a military outpost in the Spratly Islands. Several Chinese coast guard speedboats reportedly arrived to disrupt the mission, leading to clashes and collisions between the vessels and causing injuries to eight Filipino soldiers, one of whom lost a finger.

Commenting on the incident, General Romeo Brawner, chief of the Philippine armed forces, reiterated the military’s readiness to defend against any Chinese attack and demanded that China return rifles seized by the coast guard during the confrontation. Brawner also requested $2 million in damages for the harm caused to their ships, equipment, and personnel. The Philippines also reaffirmed on July 1st their intention to protect their interests and sovereign rights in the South China Sea “without any let-up” during the ninth meeting of the bilateral consultation mechanism with China in Manila, according to a statement from the Ministry of Foreign Affairs.

Both countries acknowledged the need to “restore trust and create conditions for productive dialogue and interaction.” The meeting, described as “frank and constructive,” was attended by Philippine Undersecretary for Foreign Affairs Theresa Lazaro and Chinese Vice Foreign Minister Chen Xiaodong. “Substantial progress has been made in formulating measures to manage the situation at sea, but significant differences remain. The two parties agreed to continue discussions to find an acceptable solution to various issues,” stated the Philippine Ministry of Foreign Affairs.