Philippines Prepares to Counter China’s Supply Chain Disruptions

The countries of Philippines and China are facing a major territorial dispute in the waters of South China Sea. In hindsight, Philippines is gearing up to witness long standing economic tensions with China in coming days. The increasing maritime tensions between the warring countries come as a direct result of President Ferdinand Macros Junior pushing for a more assertive stand on South China Sea.

Diversifying Trade Partners to reduce China dependency

To mitigate economic risks on its underway, Philippines has set foot on diversifying its trade prospects and investment partners. Surging higher in the supply value chain has come as a major point of highlight in the ongoing trade war. To stay ahead of competition in troubled waters, Philippines is hereby strategizing on improving its infrastructure, promoting logistical development, increased investment in human capital and adhering to technology transfer norms.

Contingency Plans for Potential Supply Chain Disruptions

Of late, Philippines is looking around to build economic relationships with other strategic Asian countries along with allied countries of America in the European nation. As part of this strategic development, Philippines has charted economic partnership ties expansion with South Korea and France. Negotiations are also underway with the Japanese superpower in this regard.

With the ongoing trade war between the two economies, Philippines is ruling out the possibility of oil and natural gas exploration in the disputed territories. Subsequent discussions created deadlock situations and trade talks appeared to be in vain. With many areas claimed by Manila as part of its exclusive economic zone being locked by China, Philippines is all set to ramp up troop rotation exercises and resupply mission based activities to its warship BRP Sierra Madre.


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