Philippines to “Reset” Ties with China Amidst Middle East Conflict and Energy Crisis
President Ferdinand Marcos Jr. Announced the Philippines is moving forward with a “reset” of its relationship with China, a decision accelerated by the ongoing Middle East conflict and its impact on global energy markets. The shift comes as the Philippines declares a state of national energy emergency and seeks to secure its energy future.
Energy Emergency and UPLIFT Program
On March 25, 2026, President Marcos signed Executive Order No. 110, declaring a state of national energy emergency and activating the Unified Package for Livelihoods, Industry, Food and Transport (UPLIFT). This whole-of-government response aims to ensure energy supply stability, support key sectors, and protect Filipinos from escalating global oil prices driven by Middle East tensions. [GMA Network]
Diesel prices are projected to exceed P130 per liter, and gasoline may surpass P100 per liter as the conflict enters its third week of causing oil price hikes. [GMA Network]
Restructuring of Philippine-China Relations
When asked about the need to reassess ties with China amidst the Middle East crisis, President Marcos stated, “It’s happening now.” He anticipates a “extremely, very serious restructuring” of the relationship. [Philstar] This sentiment echoes that of Singaporean Prime Minister Lawrence Wong, who has suggested a need to redraw international legal relationships. [GMA Network]
The move signals a potential shift in the Philippines’ foreign policy as global geopolitical dynamics evolve. [PNA]
Joint Oil Exploration in the South China Sea
Despite ongoing territorial disputes in the South China Sea, President Marcos indicated a willingness to revisit stalled talks with China regarding joint oil and gas exploration. [Gulf News] While acknowledging that territorial disputes have historically hindered progress, he suggested the current global situation could provide impetus for an agreement. [Gulf News]
The Philippines has consistently sought to separate trade agreements from territorial disputes with China. [Philstar]
Background: South China Sea Dispute
China claims almost all of the South China Sea, a vital shipping lane for over $3 trillion in annual commerce, including areas claimed by the Philippines, Vietnam, Indonesia, Malaysia, and Brunei. [GMA Network] In 2016, the Permanent Court of Arbitration in The Hague ruled in favor of the Philippines, invalidating China’s claims, but China has refused to recognize the decision. [GMA Network]