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Analysis

How the United States Four New EDCA Sites in the Philippines Challenges China’s Influence in the Indo-Pacific?

How the United States Four New EDCA Sites in the Philippines Challenges China’s Influence in the Indo-Pacific?

By selecting four new Enhanced Defense Cooperation Agreement (EDCA) locations in the Philippines, the United States has made a bold and controversial move that has ignited debate about its broader geopolitical objectives in the Indo-Pacific region. Beneath layers of diplomatic maneuvers and strategic secrecy, this decision has raised significant questions regarding the true motivations behind these choices. Is it a calculated diversion from China’s rising assertiveness, a strategic effort to strengthen ties within the region, or a daring step that could embroil the Philippines in an imminent geopolitical conflict? As the Philippines finds itself at the epicenter of global power dynamics, attention is squarely focused on how these developments will shape regional alliances and tensions.

Background on EDCA

The Enhanced Defense Cooperation Agreement (EDCA) is a significant pact between the United States and the Philippines, aimed at bolstering the military alliance between the two countries. This agreement allows the U.S. to rotate troops into the Philippines for extended periods and construct and operate facilities on Philippine military bases, which can be used by both American and Filipino forces. Importantly, the EDCA prohibits the establishment of permanent U.S. military bases, while the Philippines retains ownership of the sites and access to U.S. ships and aircraft. The EDCA was signed on April 28, 2014, by Philippine Defense Secretary Voltaire Gazmin and U.S. Ambassador to the Philippines Philip Goldberg in Manila, just before U.S. President Barack Obama’s meeting with Philippine President Benigno “Noynoy” Aquino. Despite facing legal challenges and political opposition, particularly from former President Rodrigo Duterte, the agreement was upheld by the Philippine Supreme Court in 2016, affirming its legality and its importance in strengthening the U.S.-Philippine alliance.

Ambassador Goldberg emphasized that the EDCA’s primary objective is to “promote peace and security in the region.” The agreement supplements the 1951 Mutual Defense Treaty and the 1999 Visiting Forces Agreement, reaffirming mutual cooperation between the U.S. and the Philippines in enhancing their individual and collective defense capabilities. It allows the U.S. military to pre-position defense equipment and supplies at agreed locations within the Philippines, ensuring that the materials do not include nuclear weapons. These provisions are designed to improve the interoperability of the two countries’ armed forces, support long-term modernization efforts, enhance maritime security, and expand humanitarian assistance and disaster response capabilities. While U.S. forces may exercise operational control and station personnel and equipment at these agreed locations, the Philippines retains sovereignty over these sites. Additionally, the agreement specifies that all facilities constructed under the EDCA must be turned over to the Philippine government upon the agreement’s conclusion. The EDCA, initially effective for ten years, automatically renews unless either party decides to terminate it with a one-year notice.

Overview of the New EDCA Locations

The U.S. has strategically identified four new sites under the EDCA in the Philippines, reflecting a careful blend of strategic, operational, and diplomatic considerations. This renewed partnership, which has gained momentum under Philippine President Ferdinand Marcos Jr., marks a significant step forward in U.S.-Philippine defense cooperation. On April 3, the U.S. announced the establishment of these new EDCA sites, which include the Camilo Osias Naval Base in Cagayan, Camp Melchor Dela Cruz in Isabela, Lal-lo Airport in Cagayan, and Balabac Island in Palawan. These new sites, along with the five existing EDCA locations, are intended to enhance the interoperability of the U.S. and Philippine armed forces, allowing for more seamless joint responses to various challenges in the Indo-Pacific region, including natural and humanitarian disasters. The EDCA permits the U.S. to rotate forces and access agreed-upon Philippine military bases, where they can construct storage facilities and pre-position equipment. However, the agreement prohibits the establishment of permanent U.S. bases.

The selected sites reflect strategic priorities. While Balabac Island is near the South China Sea, three of the new sites—Camilo Osias Naval Base, Camp Melchor Dela Cruz, and Lal-lo Airport—are located in northern Luzon, closer to Taiwan. This positioning enhances the capabilities of the Armed Forces of the Philippines (AFP) for naval and air operations in the Luzon Strait and Benham Rise. The Luzon Strait is a critical waterway that separates the Philippines from Taiwan and serves as a strategic link between the South China Sea and the Philippine Sea, crucial for Chinese warships entering the Western Pacific. Benham Rise, located 250 kilometers (155 miles) east of Luzon, is a part of the Philippines’ continental shelf, recognized in 2012, but has been the subject of illegal seabed surveys by China. China has strongly opposed the development of EDCA, accusing the U.S. of using it as a foothold to interfere in a Taiwan Strait crisis or to launch attacks on China. Beijing’s objections extend beyond the specific locations, reflecting broader concerns about deepening U.S.-Philippine security cooperation. During the Duterte administration, China exerted significant influence over Philippine foreign policy, but it is now frustrated by the current Philippine government’s less accommodating stance. China’s Ambassador to the Philippines, Huang Xilian, has expressed concerns, stating that the U.S. clearly intends to use the new EDCA sites to interfere in the Taiwan Strait situation, furthering its geopolitical agenda at the expense of peace and development in the Philippines and the region.

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The U.S. initially allocated $82 million for infrastructure development at the five existing EDCA sites, which has now been increased to $100 million to include the new locations. The existing sites are Basa Air Base in Pampanga, Fort Magsaysay in Nueva Ecija, Antonio Bautista Air Base in Palawan, Benito Ebuen Air Base in Cebu, and Lumbia Air Base in Cagayan de Oro. While 15 infrastructure projects are planned across these sites, only five have been completed so far. In Palawan, for example, projects include a warehouse for humanitarian assistance and disaster relief (HADR), a fuel tank, and a Command and Control (C2) fusion center. Work on the 2.8-kilometer (1.7-mile) runway at Basa Air Base began in March and is expected to be completed by September. Additionally, construction has started on a 3-kilometer (1.8-mile) runway on Balabac Island, which will also feature a HADR warehouse, barracks, and other military facilities. These initiatives enhance the ability of the AFP and U.S. military to conduct bilateral training, such as the annual Balikatan exercises, and bolster both nations’ resilience for missions like HADR and national defense. Despite China’s opposition, the U.S. Department of Defense has affirmed its commitment to working with the Philippines on new opportunities that benefit both countries, and additional EDCA sites may be announced in the future. AFP spokesperson Colonel Medel Aguilar stated, “Expanding EDCA is possible. As an archipelagic country with numerous islands and an extensive coastline, the AFP must have 360-degree protection capabilities to safeguard our sovereignty, territorial integrity, and maritime resources.”

The Defense Department will continue to collaborate closely with the Philippine Department of National Defense and armed forces to accelerate modernization projects in these areas. “For over seven decades, the United States and the Philippines have stood together, unwavering in our treaty commitments and shared vision for a more peaceful, secure, and prosperous region,” the department noted. A State Department statement emphasized that “U.S.-Philippine relations are founded on strong historical and cultural ties, as well as a shared commitment to democracy and human rights.” The Mutual Defense Treaty of 1951 serves as the cornerstone of the post-World War II security alliance between the two nations, while robust people-to-people connections and economic cooperation open new avenues for collaboration on a range of bilateral, regional, and global issues.

Criteria for Selection of New EDCA Locations

Since its signing in 2014, the Enhanced Defense Cooperation Agreement (EDCA) has experienced delays, but it has recently gained renewed momentum, particularly in response to Beijing’s aggressive actions in the South China Sea. In April 2024, significant developments included a combined Maritime Cooperative Activity in the South China Sea by Australia, Japan, the Philippines, and the United States, as well as a trilateral conference between Japan, the Philippines, and the United States to promote a ‘Free and Open Indo-Pacific’. Despite initial legal challenges and political opposition, especially from former President Duterte, EDCA implementation slowed but was never repealed. President Ferdinand Marcos Jr., elected in 2022, revitalized EDCA with the announcement of new locations and increased funding. The selection of the new EDCA locations was based on several critical factors. One of the primary considerations was the strategic proximity of these sites to potential conflict zones, particularly the South China Sea. This positioning allows for faster response times and strengthens the deterrent posture of the U.S. and the Philippines against aggressive actions by regional powers, especially China. The selected sites are also crucial for maintaining reliable logistical and supply chains, which are essential for sustaining long-term military operations. These locations enable the smooth movement of personnel, equipment, and supplies, ensuring that both U.S. and Philippine forces receive the necessary support during any conflict or humanitarian mission. Another important criterion for the selection of these sites was their capacity to support a wide range of military missions. These missions include air and naval patrols, training exercises, disaster response, and other joint activities. The versatility of these sites is essential for addressing the diverse security challenges in the region. Furthermore, locations with existing military infrastructure were preferred, as they can be upgraded more efficiently to meet the operational requirements of both countries. The selection process also took into account the accessibility of these sites for both U.S. and Philippine forces, ensuring that they are easily reachable during times of crisis.

Analysis and Implications of New EDCA Locations

In the coastal town of Santa Ana, a municipality in the province of Cagayan, northern Luzon, the landscape of international security is rapidly changing. Known primarily for its untouched beauty and role in the burgeoning Cagayan Special Economic Zone, Santa Ana has now found itself thrust into the geopolitical limelight. This shift is due to its selection as one of nine newly designated locations for the U.S. military’s Enhanced Defense Cooperation Agreement (EDCA) in the Philippines, bringing the town to the forefront of tensions between the United States and China. The U.S. military’s presence in Santa Ana, along with the other newly established EDCA sites, represents a significant strategic pivot, particularly in the context of regional security dynamics. In previous decades, the U.S. operated extensive bases throughout the Philippines, including the sprawling Subic Bay Naval Base and Clark Air Base. These bases played crucial roles in both the Vietnam War and the Cold War but were eventually closed following the Philippine Senate’s 1991 decision to end the U.S. military presence on its soil. The recent establishment of smaller, strategically positioned sites under EDCA marks a departure from those large-scale installations and reflects a shift in U.S. military strategy.

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This shift in strategy is evident in the recent Balikatan military exercises, held annually to demonstrate the strength and readiness of the U.S.-Philippine alliance. These exercises are among the largest in recent history, featuring 17,000 troops from both countries, along with forces from Australia. For the first time, the drills included activities at several of the new EDCA sites, including Santa Ana. These exercises, which simulated the defense of small islands against potential aggressors, highlight the importance of the new locations in the broader U.S. strategy to counter China’s growing influence in the Indo-Pacific region. As the construction of infrastructure at the new EDCA sites progresses, the local communities and government officials in the affected areas face a myriad of challenges and concerns. For Santa Ana, the influx of U.S. military personnel and the construction of new facilities raise questions about the potential impact on the local economy, environment, and social fabric. While the presence of U.S. forces is expected to bring economic opportunities, such as increased demand for goods and services, it also poses risks, including environmental degradation, displacement of local communities, and possible social tensions.

Challenges and Controversies

The announcement of the new EDCA sites has not been without its share of challenges and controversies. Local opposition has emerged in various parts of the Philippines, particularly in the northern province of Cagayan, where the new sites are located. Residents and local officials have expressed concerns about the potential environmental impact of the new military facilities, including the destruction of natural habitats and the displacement of communities. Additionally, there is apprehension about the social implications of increased U.S. military presence, such as potential increases in crime and other social issues. The expansion of EDCA has also sparked a national debate over the issue of Philippine sovereignty. Critics argue that the establishment of new U.S. military sites undermines the Philippines’ sovereignty and exposes the country to the risks of being drawn into broader geopolitical conflicts, particularly between the U.S. and China. They contend that hosting additional U.S. military facilities could erode the Philippines’ autonomy in foreign policy decisions and limit its ability to navigate regional issues independently.

Public opinion on the expansion of EDCA is divided. While some Filipinos support the agreement as a means of enhancing national security and deterring external threats, others are concerned about the potential consequences for the country’s independence and regional standing. Polls indicate that nearly half of Filipinos are opposed to the expansion of U.S. military presence in the country, fearing that it could entangle the Philippines in global conflicts and diminish its regional influence. The EDCA expansion also has significant diplomatic implications for the Philippines’ relationships with its neighbors and other major powers. China’s reaction to the announcement of new EDCA sites has been swift and negative. Beijing views the expansion as a direct threat to its interests in the South China Sea and a challenge to its regional dominance. In response, China has increased its military presence in the contested waters and conducted a series of naval exercises near the Philippines. These actions have further strained relations between Manila and Beijing and complicated efforts to resolve territorial disputes through diplomatic means. On the other hand, the U.S. sees the EDCA expansion as a vital component of its broader strategy to counter China’s growing influence in the Indo-Pacific. By strengthening its military presence in the region and deepening its alliance with the Philippines, the U.S. aims to deter Chinese aggression and maintain stability in the South China Sea. However, this approach risks escalating tensions and could lead to a more confrontational relationship between the U.S. and China, with the Philippines caught in the middle.

End Note

The establishment of new EDCA locations in the Philippines represents a strategic move by the United States to enhance its military presence in the Indo-Pacific region and counter China’s growing influence. While the expansion of EDCA promises long-term benefits for U.S.-Philippine relations, including enhanced security cooperation and economic opportunities, it also faces significant local opposition and potential diplomatic challenges. As the Philippines continues to play a pivotal role in regional security, it must carefully balance its national interests with the broader geopolitical dynamics at play. The selection of these new EDCA locations underscores the strategic importance of the Philippines in the U.S.’s broader Indo-Pacific strategy. However, the challenges and controversies surrounding the expansion of U.S. military presence in the country highlight the complex and often contentious nature of this relationship. Moving forward, the Philippines will need to navigate these challenges carefully, balancing the benefits of enhanced security cooperation with the risks of being drawn into broader geopolitical conflicts. The future of EDCA and the U.S.-Philippine alliance will likely depend on how both countries address the concerns of local communities, manage diplomatic relations with regional powers, and ensure that the benefits of the agreement are shared equitably. As the U.S. continues to strengthen its presence in the Indo-Pacific, the Philippines will remain a critical partner in maintaining regional stability and security. The success of this partnership will hinge on the ability of both nations to work together in addressing the challenges and opportunities that lie ahead.

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Analysis

How Lumbia Air Base in Cagayan de Oro is Important for the Philippines?

How Lumbia Air Base in Cagayan de Oro is Important for the Philippines?

In the heart of Northern Mindanao, where strategic interests and regional security converge, lies a key installation often overshadowed by its more famous counterparts—Lumbia Air Base. This seemingly unremarkable airstrip has quietly evolved from its modest beginnings into a crucial hub for military operations in Mindanao. As tensions and conflicts shape the landscape of the region, the significance of Lumbia Air Base becomes increasingly apparent. What makes this base so essential, and how does its history and strategic location contribute to its current role? Let us dive into the story of Lumbia Air Base to uncover its vital role in the ever-changing dynamics of regional security.

A Brief

Even though Lumbia Air Base was first built as a civilian airfield, it has changed significantly over time. It was repurposed to fit military purposes. This change was a component of a larger initiative to expand the Philippine military’s operational reach and capabilities in the area.
Strategically situated in Northern Mindanao, Lumbia Air Base is situated near Cagayan de Oro, Misamis Oriental. This facility’s central location within the Mindanao area makes it essential for coordinating military activities throughout the region. The facility is a vital tool for the Philippine military in preserving regional peace and stability because of its strategic location, which enables it to efficiently support both defensive and logistical operations.

Historical Background

Lumbia Air Base, originally established during the American occupation of the Philippines in the early 1940s, has a storied history. The airfield, initially known as Lumbia Airfield, was constructed to support regional aviation needs. During World War II, it played a significant role in various military operations, and provided crucial logistical support in the region.

After the war, Lumbia underwent extensive reconstruction and modernization. These efforts were aimed at upgrading its facilities and expanding its capabilities. By the late 1950s and early 1960s, the airfield transitioned from its initial civilian role to become a dedicated military air base.

Strategic Importance

As the operational headquarters for the 15th Strike Wing of the Philippine Air Force, Lumbia Air Base plays a crucial role in the military landscape of the Philippines. In order to sustain both regional stability and national security, this wing is responsible for providing tactical and ground air support throughout the nation. The presence of the 15th Strike Wing in Lumbia, which is based at the Danilo Atienza Air Base at Sangley Point, Cavite, greatly expands the Philippine Air Force’s operational reach and efficacy.

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The significance of the site is further highlighted by the April 28, 2014, signing of the Enhanced Defense Cooperation Agreement (EDCA). By permitting the rotational presence of American troops in “agreed locations” around the Philippines, this agreement was intended to strengthen security cooperation between the United States and the Philippines. Lumbia Air Base was named as one of the principal locations for US military operations under EDCA. This partnership has been strengthened by recent advances, despite some implementation delays and difficulties. The Philippines and the United States expanded the EDCA to encompass more sites in 2023, which is noteworthy since it improved their combined military capability and strategic placement.

Recent cooperative efforts and joint exercises under EDCA have brought the base’s strategic importance to light. For example, the 2024 Balikatan military exercises featured over 16,000 participants from the United States, the Philippines, and allies, demonstrating cutting edge interoperability and training.

Current Operations and Facilities

Lumbia Air Base, a crucial component of the Philippine Air Force (PAF) network, boasts an exceptional runway and airfield capable of supporting a wide array of military activities. Once serving civilian flights until 2013, it now operates solely for military purposes, signifying its strategic significance. Ongoing renovations and expansions of the runway are set to accommodate more aircraft and boost operational capabilities. These improvements align with broader modernization efforts under the Enhanced Defense Cooperation Agreement (EDCA) with the United States, addressing growing regional security demands, particularly in the Indo-Pacific region.

The 15th Strike Wing, stationed at Lumbia Air Base, plays a pivotal role in both regional security and national defense. On May 17, 2024, the Philippine Air Force welcomed the final two of six Turkish Aerospace Industries (TAI) T-129 ‘Atak’ helicopters, tail numbers 1505 and 1506, at Major Danilo Atienza Air Base in Cavite. This acquisition, part of the Horizon 2 phase of the AFP Modernization Program, stems from a $269 million government-to-government agreement with Turkey.

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Renowned for their versatility in various operational conditions, the T-129 ‘Atak’ helicopters are expected to significantly enhance the air force’s capabilities in urban warfare, aerial reconnaissance, and counter-insurgency operations. These twin-engine helicopters come equipped with advanced fire support technologies, precise weaponry, and state-of-the-art observation and targeting systems. Following technical checks completed upon their arrival in the Philippines on November 29, 2023, the helicopters were officially commissioned in May 2024.

These developments underscore the Philippines’ commitment to bolstering national defense and enhancing interoperability with allied forces. The ongoing infrastructure upgrades at Lumbia Air Base reflect a strategic focus on defending territorial claims and improving defense readiness, particularly in response to rising tensions in the South China Sea and surrounding regions.

Geopolitical Context

The security issues in Mindanao are critical given the geopolitical setting of the Philippines. Insurgency and terrorism continue to pose serious risks to the region. The Marawi Siege in 2017, which witnessed fierce urban combat between militants connected with the Islamic State (IS) and Philippine government troops, is one of the noteworthy instances involving the IS’s increased activity.

As of 2024, the Philippine government continues to place a high priority on counterterrorism and counterinsurgency efforts. The Philippine Armed Forces (AFP) are still carrying out massive operations to break up terrorist networks and put an end to insurgency.

The Philippines has increased its collaboration with both regional and international partners in response to these threats. The country’s counterterrorism and counterinsurgency capabilities have been strengthened thanks in large part to the Enhanced Defense Cooperation Agreement (EDCA) with the United States. The United States offers training, intelligence sharing, and logistical support, all of which greatly improve the AFP’s operational efficacy.

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The Philippines’ connections and alliances are vital in determining security dynamics in the region. In order to handle cross-border security challenges and improve regional stability, cooperation with ASEAN has been essential. By giving member states a forum to exchange intelligence and coordinate responses to extremist threats, the ASEAN regional framework promotes cooperation on counterterrorism initiatives and disaster relief efforts.

Beyond ASEAN, the Philippines interact with other international allies. The nation’s strategic alliances with countries like the United States, Australia, and Japan reinforce a wider security net that upholds peace and stability in the area.

Future Prospects

The strategic aims and regional aspirations of the Philippines position it for notable gains in both military prowess and infrastructure.

The nation is concentrating on significant infrastructure expansions and upgrades in 2024 as part of a larger economic and security plan. The construction of military facilities and transportation networks are important initiatives that will improve both the defense and civilian infrastructure. It is anticipated that the new $6 billion infrastructure investment plan will improve connectivity and update vital transportation linkages, promoting economic expansion and strategic mobility.

Through the Enhanced Defense Cooperation Agreement (EDCA), the Philippines is looking into possibilities for a larger U.S. military deployment. This entails increasing the number of cooperative training and exercise sessions as well as possibly enhancing the infrastructure to accommodate a greater number of US soldiers. Notably, the expanding strategic alliance between the United States and the Philippines is reflected in the joint drills, which have been expanded to incorporate more difficult scenarios near contentious locations like the South China Sea. Training sessions like the Balikatan drills, which assessed tactical integration and endurance, demonstrate the continuous dedication to enhancing defense capabilities.

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The Philippines’ developing strategic posture is intimately linked to its long-term objectives for maintaining regional stability. The nation seeks to manage its complex relationships with its neighbors, especially China, while enhancing its defense capabilities and regional influence. The Philippines is attempting to strike a balance between its security requirements and diplomatic commitments while tensions in the South China Sea continue. Enhancing defense readiness and taking part in regional security frameworks are part of the strategic aim to guarantee a stable and secure marine environment.

Furthermore, the Philippines is dedicated to maintaining a balance in its relations with its neighbors by participating in multilateral agreements and strategic alliances. The necessity of regional cooperation in accomplishing sustainable development goals and upholding peace is emphasized in the UN Sustainable Development Cooperation Framework for 2024–2028. The strategic perspective of the Philippines involves utilizing these global alliances to advance stability and proficiently handle crises within the region.

End Point

Lumbia Air Base exemplifies the Philippines’ strategic approach to increase its defense infrastructure and regional security, with its sophisticated runway and airfield playing a critical role in military operations. The ongoing modernization initiatives, driven by the Enhanced Defense Cooperation Agreement with the United States, reflect the nation’s commitment to strengthening its defense posture and operational readiness. Looking ahead, the future of Lumbia Air Base and the Philippines’ broader defense strategy will be shaped by evolving regional dynamics and strategic alliances, with a continued emphasis on infrastructure development and enhanced military cooperation with international partners, solidifying the Philippines’ position in the Indo-Pacific region.

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Analysis

Does China Claim Malaysia’s Luconia Shoals?

Does China Claim Malaysia's Luconia Shoals?

China and Malaysia’s historical interactions stretch back to the ancient maritime Silk Road, with the Malacca Sultanate establishing early diplomatic and trade relations with the Ming Dynasty in the 15th century. The formal diplomatic relationship between the two nations was established in 1974, marking a significant step in their modern partnership. This relationship has evolved into a Comprehensive Strategic Partnership, emphasizing economic, political, and cultural cooperation. However, tensions remain, particularly over territorial disputes in the South China Sea. China’s expansive claims, represented by the controversial nine-dash line, include areas such as the Luconia Shoals, which fall within Malaysia’s exclusive economic zone. Despite these disputes, both countries strive to manage their differences through diplomacy while safeguarding their respective national interests.

China Malaysia Ties: An Overview

The relationship between China and Malaysia has deep historical roots, extending back centuries through early trade and cultural exchanges. Chinese records from the 5th and 6th centuries AD mention the presence of Malay sailors in China, signifying the long-standing interactions between the two regions. During the Ming Dynasty, the Sultanate of Malacca established close political and economic ties with China, benefiting from the Ming dynasty’s protection. These early interactions laid the foundation for the modern diplomatic relations that were formally established in May 1974. After the Cold War, ties between China and Malaysia strengthened significantly, especially after the Communist Party of Malaya ended its insurgency in 1989.

Economically, China and Malaysia share a robust partnership. Since 2009, China has been Malaysia’s largest trading partner, with bilateral trade reaching US$98.90 billion in 2023. Malaysia is also a key participant in China’s Belt and Road Initiative (BRI), with notable projects like the East Coast Rail Link (ECRL) and the Malaysia-China Kuantan Industrial Park reflecting their strong economic ties. Malaysia, exports a variety of goods to China, including palm oil, electronics, and natural gas, highlighting the interconnected nature of their economies. In 2024, the two countries renewed a five-year economic cooperation agreement, focusing on trade, investment, agriculture, manufacturing, infrastructure, and financial services, further solidifying their partnership.

Politically, China and Malaysia maintain a Comprehensive Strategic Partnership, established in 2013, which emphasizes mutual respect and understanding. Frequent high-level visits have reinforced diplomatic ties, such as Chinese Premier Li Qiang’s visit to Malaysia in 2024, which resulted in a joint statement and several memoranda of understanding (MOUs). However, despite their close cooperation, tensions occasionally arise due to overlapping territorial claims in the South China Sea. While these disputes have caused friction, both countries remain committed to resolving issues through bilateral discussions.

Culturally, Malaysia’s significant Chinese diaspora, the second-largest in the world, has played a key role in shaping the nation’s social and cultural fabric. Educational and cultural exchanges between the two nations are also robust, with programs fostering greater understanding and collaboration. Malaysia’s large Chinese community significantly contributes to the country’s cultural landscape, while educational programs encourage mutual understanding. Many Malaysian students pursue higher education in China, and numerous Chinese students study in Malaysia, creating valuable people-to-people ties.

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Diplomatically, China and Malaysia have maintained a stable and cooperative relationship, working together on regional and international issues. Both countries are actively involved in trade agreements and infrastructure projects, particularly under the Belt and Road Initiative (BRI). Malaysia has benefited from increased connectivity and infrastructure development through its involvement in the BRI, demonstrating the strategic nature of its relationship with China.

Despite the strong ties, tensions over the South China Sea continue to pose challenges. China’s claims, based on the “nine-dash line,” overlap with Malaysia’s exclusive economic zone (EEZ), leading to disputes over maritime boundaries and resource exploration. These disagreements have occasionally strained relations but have not derailed overall cooperation.

Recent developments in the South China Sea have brought the issue to the forefront. Malaysia continues its oil and gas exploration activities in the region despite objections from China. Prime Minister Anwar Ibrahim has reaffirmed Malaysia’s stance, emphasizing that these activities are within its waters and are crucial for the country’s economic interests. China has protested these activities through diplomatic notes, but Malaysia remains firm, citing its sovereign rights and adherence to international law, including the United Nations Convention on the Law of the Sea (UNCLOS).

A recent leak of a classified diplomatic note from China, which warned Malaysia to halt its oil drilling activities, has further strained relations. Despite this, both countries have committed to resolving the dispute peacefully, emphasizing the importance of maintaining their broader relationship.

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Does China Claim Luconia Shoal?

The Luconia Shoals, also known as the Luconia Reefs, are situated approximately 100 kilometers off the coast of Sarawak, Malaysia, within Malaysia’s exclusive economic zone (EEZ). The shoals are part of a larger reef complex in the South China Sea and are sometimes considered the southernmost part of the Spratly Islands.

These shoals hold significant strategic importance due to their rich marine biodiversity and potential underwater resources, such as oil and natural gas. This makes the area valuable for both economic and strategic reasons.

China claims the Luconia Shoals as part of its broader claim over the South China Sea, delineated by the “nine-dash line.” This line encompasses nearly the entire South China Sea, including regions that fall within the EEZs of other countries, such as Malaysia.

Recent developments have intensified tensions in the region. China has repeatedly protested Malaysia’s oil and gas exploration activities in the Luconia Shoals. A recent incident involved a leaked Chinese diplomatic note urging Malaysia to cease its exploration activities, asserting that they infringe on Chinese sovereignty. Additionally, China has increased its military presence in the area, exemplified by the deployment of 16 military aircraft near the Luconia Shoals in 2021, prompting Malaysia to scramble fighter jets in response. The Chinese Coast Guard has also maintained a near-constant patrol around the shoals, signaling China’s intent to assert control over the region without establishing a physical occupation.

In response, Malaysia has consistently asserted that its activities in the Luconia Shoals are within its sovereign rights and comply with international law, particularly the United Nations Convention on the Law of the Sea (UNCLOS). Malaysian Prime Minister Anwar Ibrahim has emphasized that Malaysia will persist with its exploration activities and will not yield to China’s demands.

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What is China’s nine dash line claim?

China’s “nine-dash line” claim asserts sovereignty over a substantial portion of the South China Sea, represented by a U-shaped line that encompasses approximately 90% of the region. This claim stretches as far as 2,000 kilometers from the Chinese mainland, extending close to the shores of several Southeast Asian countries, including Vietnam, the Philippines, Malaysia, and Brunei.

The origins of the nine-dash line date back to 1947 when the Republic of China published maps featuring eleven dashes. After the establishment of the People’s Republic of China in 1949, the number of dashes was revised to nine. China bases its claim on historical usage, asserting that Chinese fishermen and traders have utilized these waters for centuries.

The nine-dash line is highly controversial and has been the subject of significant international disputes. A key point of contention is the United Nations Convention on the Law of the Sea (UNCLOS), which defines territorial waters, exclusive economic zones (EEZs), and continental shelves. Many countries argue that China’s claim violates UNCLOS by overlapping with their EEZs and territorial waters. In 2016, the Permanent Court of Arbitration in The Hague ruled in favor of the Philippines, declaring that China’s claims have no legal basis under international law. China rejected this ruling, straightaway.

The claim has led to heightened tensions and confrontations in the South China Sea, involving not only the claimant states but also external powers like the United States. The U.S. conducts freedom of navigation operations in the region to challenge China’s claims.

China’s Classified diplomatic note to Malaysia over oil and gas exploration in the South China Sea

A recently leaked classified diplomatic note from China to Malaysia has revealed Beijing’s strong opposition to Malaysia’s oil and gas exploration activities in the South China Sea. In the note, China accused Malaysia of encroaching on areas covered by its controversial 10-dash line map, which claims nearly the entire South China Sea. The document specifically referenced Malaysia’s activities near the Luconia Shoals, located close to the Malaysian state of Sarawak.

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In response, Malaysia has firmly stated that it will not yield to China’s demands and will continue its exploration efforts, maintaining that these activities are taking place within its own waters. The Malaysian government has also called for an investigation into the leak of the classified document. This signifies the complex territorial disputes in the South China Sea, where multiple countries, including Malaysia, have overlapping claims with China.

Will Malaysia continue South China Sea exploration?

On September 5, Malaysian Prime Minister Anwar Ibrahim affirmed that Malaysia will continue its oil and gas exploration activities in the South China Sea, despite a recently leaked diplomatic document revealing opposition from Beijing. Anwar emphasized that Malaysia’s exploration efforts are well within its own waters and that both countries would address the issue through amicable discussions.

Malaysia’s state-run oil company, Petronas, operates oil and gas fields within the country’s exclusive economic zone in the South China Sea. Despite an international court ruling that dismissed China’s claim as having no legal basis, Beijing continues to assert ownership over almost the entire South China Sea, a vital region for global trade and economic resources.

In a press conference broadcast live on Malaysian television, Anwar reiterated that Malaysia’s actions were neither provocative nor hostile. He described China as a “great friend” but made it clear that Malaysia must continue to secure its economic interests, which include oil drilling within its territorial waters. He stressed that halting exploration activities would not be an option, as they are crucial to Malaysia’s economic survival.

The controversy stems from a leaked diplomatic note, reportedly published by the Philippine news outlet Inquirer.net, in which China demanded that Malaysia stop its oil and gas activities near the state of Sarawak on Borneo island. While Malaysia’s foreign ministry has launched an investigation into the leak, it has not denied the authenticity of the document.

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Anwar expressed openness to dialogue with China to resolve the matter, highlighting that any disputes should not undermine the strong bilateral relationship between the two nations. He also pointed out that continued engagement is necessary, but this does not mean Malaysia will stop its exploration activities.

The South China Sea has become a regional flashpoint, with frequent confrontations between China and other claimant countries like the Philippines. Analysts fear that rising tensions in the area could potentially involve larger powers, such as the United States, due to mutual defense treaties with regional allies like the Philippines.

What are challenges, roadblocks, and the Way ahead?

The relationship between China and Malaysia has deep historical roots, dating back centuries through trade and cultural exchanges. Chinese records from the 5th and 6th centuries mention Malay sailors in China, highlighting the long-standing connections between the two regions. During the Ming Dynasty, the Sultanate of Malacca established close ties with China, benefiting from the protection of the Ming court. These early interactions laid the groundwork for modern diplomatic relations, formally established in May 1974. In the post-Cold War period, ties between the two nations strengthened significantly, especially after the end of the Communist Party of Malaya’s insurgency in 1989.

Economically, China and Malaysia have developed a robust partnership. Since 2009, China has been Malaysia’s largest trading partner, with bilateral trade reaching RM450.84 billion (US$98.90 billion) in 2023. Malaysia plays a key role in China’s Belt and Road Initiative (BRI), with major projects like the East Coast Rail Link (ECRL) and the Malaysia-China Kuantan Industrial Park reflecting their strong economic cooperation. In 2024, the two countries renewed a five-year economic cooperation agreement that focuses on trade, investment, agriculture, manufacturing, infrastructure, and financial services, further solidifying their economic ties.

Politically, China and Malaysia maintain a Comprehensive Strategic Partnership, established in 2013, based on mutual respect and understanding. Frequent high-level visits, such as Chinese Premier Li Qiang’s visit to Malaysia in 2024, have strengthened diplomatic ties. However, despite close cooperation, tensions arise due to overlapping territorial claims in the South China Sea. While these disputes have caused friction, both countries remain committed to resolving issues through bilateral discussions.

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Culturally, Malaysia’s significant Chinese diaspora has played an essential role in shaping the nation’s social and cultural fabric. Educational and cultural exchanges between the two nations are strong, with programs that foster greater understanding and collaboration. Many Malaysian students study in China, and vice versa, enhancing people-to-people connections and mutual understanding. However, while economic ties between China and Malaysia are strong, challenges persist. Malaysia seeks to balance its economic dependence on China with its national interests and sovereignty, especially regarding the South China Sea dispute. The evolving geopolitical landscape in Southeast Asia, influenced by other major powers, presents additional challenges and opportunities for both countries.

China’s “nine-dash line” claim asserts sovereignty over a substantial portion of the South China Sea, a region rich in natural resources and strategic shipping lanes. The claim, represented by a U-shaped line, encompasses about 90% of the sea, extending close to the shores of Southeast Asian nations like Vietnam, the Philippines, Malaysia, and Brunei. The origins of this claim date back to 1947 when the Republic of China published maps with eleven dashes. After the establishment of the People’s Republic of China in 1949, the number of dashes was reduced to nine. China bases its claim on historical usage, asserting that Chinese fishermen and traders have used these waters for centuries.

The nine-dash line is highly controversial and has led to significant international disputes. A major point of contention is the United Nations Convention on the Law of the Sea (UNCLOS), which defines territorial waters and exclusive economic zones (EEZs). Many countries argue that China’s claim violates UNCLOS by overlapping with their EEZs. In 2016, the Permanent Court of Arbitration in The Hague ruled in favor of the Philippines, stating that China’s claims had no legal basis under international law. Despite the ruling, China has continued to assert its claims.

China has protested Malaysia’s oil and gas exploration activities in the Luconia Shoals, leading to diplomatic tensions. In one recent incident, a leaked Chinese diplomatic note urged Malaysia to halt its exploration activities, claiming they infringed on Chinese sovereignty. China has also increased its military presence in the area, including sending 16 military aircraft near the shoals in 2021, which led Malaysia to scramble its fighter jets. Despite these protests, Malaysia has consistently maintained that its activities in the area are within its sovereign rights under international law, specifically UNCLOS. Malaysian Prime Minister Anwar Ibrahim has affirmed that Malaysia will continue its exploration activities, refusing to yield to China’s demands.

End Note

In essence, while China and Malaysia share deep-rooted historical, economic, and cultural ties, their relationship faces ongoing challenges, particularly concerning territorial disputes in the South China Sea. The contested claims, especially over areas like the Luconia Shoals, highlight the tension between China’s expansive nine-dash line and Malaysia’s sovereign rights under international law. Despite these disputes, both nations continue to engage in diplomatic efforts, emphasizing dialogue and cooperation, even as Malaysia remains resolute in pursuing its oil and gas exploration activities critical to its economic interests. The evolving geopolitical dynamics in the region will continue to shape the future of this relationship.

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Analysis

Malaysia to Investigate Leaked Classified Chinese Note on South China Sea Dispute

Malaysia to Investigate Leaked Classified Chinese Note on South China Sea Dispute

Malaysia’s Ministry of Foreign Affairs has launched an internal probe into the leak of a classified diplomatic note sent by China concerning oil exploration activities in the South China Sea. The move follows an article published by the Philippine Daily Inquirer on August 29, which detailed the contents of the confidential communication. The Malaysian government expressed grave concern over the breach, as the document constitutes an official communication channel between Beijing and Kuala Lumpur.

Background

In February 2024, China sent a classified diplomatic note to Malaysia, expressing concerns over Malaysia’s oil and gas exploration activities in the South China Sea. This note was leaked by the Philippine Daily Inquirer on August 29, 2024, drawing attention to ongoing regional tensions. The focus of China’s concern was Malaysia’s exploration near the Luconia Shoals, an area situated roughly 100 kilometers off the Malaysian state of Sarawak. While Malaysia asserts its rights to this region, China claims the area under its controversial nine-dash line, which covers nearly the entire South China Sea.

The diplomatic note highlights China’s longstanding claim over the South China Sea and highlights Beijing’s opposition to Malaysia’s exploration activities. According to the document, these activities infringe upon China’s territorial claims, and the note urges Malaysia to halt its operations immediately. This is not the first time such concerns have been raised, but the leak has brought the issue into sharper focus, putting additional strain on the diplomatic relations between the two nations.

Malaysia’s response to the leak has been swift. The country’s Foreign Ministry has initiated a police investigation into how the document was made public and launched an internal probe. Malaysia’s stance remains firm, with officials emphasizing that the country will continue to protect its sovereignty and pursue its interests in its maritime areas, in accordance with international law, specifically the United Nations Convention on the Law of the Sea (UNCLOS).

Malaysian Prime Minister Anwar Ibrahim further reinforced this position, stating that Malaysia will persist with its oil and gas exploration in the South China Sea despite the concerns raised by China. This development reflects the broader regional dynamics, as Malaysia, along with the Philippines, Vietnam, and Taiwan, all have overlapping claims in the South China Sea, making the area a significant flashpoint for international relations.

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Recent Developments

The leaked diplomatic note highlights the sensitive and contentious nature of the territorial disputes in the South China Sea. It also sheds light on the careful balancing act Malaysia is attempting, as it seeks to assert its rights in the region while managing its diplomatic ties with China.

In its statement released on Wednesday, the Ministry of Foreign Affairs confirmed it is conducting an internal investigation and will be filing a police report to further scrutinize the incident. While the ministry refrained from naming the Philippine media outlet or verifying the authenticity of the note, it emphasized the need for swift action to prevent further leaks of classified materials. 

Malaysia Urged to Halt All activities in the South China Sea by China

The note in question reportedly urged Malaysia to halt all oil exploration and drilling operations in the Luconia Shoals, a resource-rich area located about 100 kilometers off the coast of Sarawak. According to the Inquirer, China claimed that Malaysia’s activities in the region violated its sovereignty under the controversial nine-dash line. China’s nearest landmass, Hainan Island, is situated approximately 1,300 kilometers from the disputed shoals.

The South China Sea dispute involves competing claims from multiple nations, including Malaysia, the Philippines, Vietnam, and Taiwan. China claims nearly the entire sea based on historical maps, despite a 2016 international arbitration ruling that dismissed the nine-dash line as legally baseless. Malaysia, while sharing strong economic ties with China, has now become entangled in the broader geopolitical tensions over control of these vital waters.

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Malaysia’s Ministry of Foreign Affairs reaffirmed its stance on the South China Sea, pledging to defend its sovereignty and interests in accordance with international law, including the United Nations Convention on the Law of the Sea (UNCLOS). The ministry noted that while Malaysia seeks peaceful resolution through dialogue, the country will remain firm in protecting its maritime rights.

Beijing has not commented on the leaked note. However, diplomatic tensions have flared in recent months, with China’s aggressive presence in the South China Sea leading to repeated confrontations, especially with the Philippines. Just this year, multiple stand-offs occurred between Chinese and Philippine coastguards near Second Thomas Shoal.

Prime Minister Anwar Ibrahim has maintained a more diplomatic approach toward Beijing, stressing the importance of balancing national interests with regional stability. However, the leak has raised concerns about Malaysia’s ability to maintain this balancing act amid increasing pressure from China. Anwar has acknowledged China’s concerns over Malaysia’s energy activities but remains open to negotiations on resolving maritime disputes.

This incident marks the second time in recent months that China’s activities in the South China Sea have drawn public attention in Malaysia. Earlier this year, a standoff between Malaysian state oil company Petronas and Chinese vessels occurred near the same contested waters. Chinese survey ships have increasingly patrolled the area, challenging Malaysia’s economic activities within its Exclusive Economic Zone (EEZ).

Despite these challenges, Malaysia’s foreign ministry highlighted that Kuala Lumpur and Beijing have committed to handling the South China Sea dispute diplomatically. Both nations co-chair discussions within the ASEAN framework aimed at reaching a Code of Conduct (COC) for the region, with negotiations expected to finalize in the coming years.

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China’s claims over the South China Sea are based on the nine-dash line, a boundary dating back to 1947. However, the Permanent Court of Arbitration in The Hague ruled in 2016 that this claim had no merit under international law, siding with the Philippines. China has disregarded the ruling, continuing to assert its claims through military and diplomatic means.

Malaysia’s role in the dispute is further complicated by its reliance on China as its largest trading partner. Since 2009, bilateral relations between the two nations have strengthened, even as Malaysia faced pressure from the international community to stand firm against Chinese encroachment on its EEZ.

The Luconia Shoals, where the recent conflict has surfaced, are located within Malaysia’s EEZ, recognized by UNCLOS. However, China’s claim extends beyond its geographic proximity, relying on historical maps to justify its territorial ambitions in the South China Sea.

While the dispute escalates, Malaysia’s foreign ministry reiterated that its focus remains on diplomatic engagement. The government has called on all nations involved to respect the principles of peaceful negotiation and avoid any actions that could lead to violence or further escalation in the region.

End Note

The leak of China’s diplomatic note adds complexity to Malaysia’s foreign policy strategy, as it seeks to maintain both economic ties with China and its sovereign rights in the contested waters. Analysts believe that Malaysia’s next steps will be closely watched, both by regional partners and global powers like the United States.

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Malaysia remains engaged in ASEAN-led efforts to establish a Code of Conduct for the South China Sea, aimed at reducing tensions and fostering long-term peace.

The investigation into the leak is ongoing, with the Malaysian government prioritizing both national security and diplomatic engagement with China. As tensions persist, Malaysia faces the challenge of navigating its position in a rapidly evolving geopolitical landscape.

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