Darwin Wally T. Wee, a freelance journalist from the Philippines who is on an exchange program with the Economic Observer, gives his perspective on his president's recent trip to China. 

 The only thing that can be said for sure of Philippine President Benigno S.C. Aquino, III’s visit to China is that both countries stood their ground in asserting sovereignty claims over the South China Sea.

On a positive note, the two nations said the gap is now narrowing, and they will likely to strike reach an agreement in the near term to advance the exploration of oil and gas in an area which may oil industry experts considered to be the next Persian Gulf.

This was reflected to their joint statement, agreeing “not to let maritime disputes affect the broader picture of friendship and cooperation between the two countries.”

Mineral-hungry China is interested in the Philippines’ natural resources, while the latter is keen to benefit from China’s growth.

 “Our positions previous to this were really so disparate. They were too far apart, but in this particular instance, there was that adherence to peaceful means, getting our people to talk together and fully to come to a common framework of resolving the issue,” Mr. Aquino told journalists during an informal talk on Wednesday evening.

Among the major positive steps, he named the Chinese government’s implementation agreement for the Declaration of the Conduct of Parties in the South China Sea.

For his part, Mr. Hu said the best way to address the problem is to “jointly explore” the South China Sea.

There statements can be seen as a sign that the two countries cannot afford to lose time to work together amid the pressing demands of finding alternative sources of fuel and gas amid depleting resources and the political instability in the Middle-East and North Africa.

The US Energy Information Administration has estimated that oil consumption in developing Asian will rise annually by 2.7% from 14.8 million barrels per day to around 29.8 by 2030 with China accounting for almost half of the growth.

The Spartly islands area alone is estimated to have 90 million cubic meters of natural gas and 440 million barrels of oils. The islands are also claimed - wholly or partly - by other ASEAN nations, notably Vietnam, Brunei, and Malaysia.

A confidential report released a by private risk and assessment firm said that “a protracted multilateral territorial dispute is the foremost stumbling block in efforts to commercially develop oil and gas reserves in the region.”

The Philippines and China have traded accusations in the past months over the dispute in the waters off West Philippine Sea.

Both have shown their willingness to resolve the issue but their methods differ. The Chinese government wants the issue to be resolved through bilateral talks, while the Philippines would prefer to bring the subject in the United Nations level.

 “Now, you have a statement from the superpower of the bloc saying, ‘let's put it down black and white exactly how to implement this,’” Mr. Aquino, referring to China's wish to make operational a Code of Conduct “that guides everybody as to how to behave within these disputed territories.”

“There was no increase in tension—that is very, very clear. It's significant that they will be pushing for that code, not just as a statement of principle but rather a binding agreement as to how each and every party in the dispute will conduct themselves,” he said.

Lawmakers in the Philippines have warned President Aquino not to strike any joint deals for oil exploration since exploration area falls 80% within the exclusive economic zone (EEZ) of the Philippines.

According to Bayan Muna (Nation First) Representative Neri Colmenares, they do not want a repetition of what had happened during the previous administration that entered a Joint Marine Seismic Undertaking (JMSU) with China and Vietnam.

The JSMU was signed by former Philippine President Gloria M. Arroyo with President Hu Jintao, during her state visit to China in 2004. It was a joint research between Philippine National Oil Corporation and China Offshore Oil Corporation. The deal was eventually expanded eventually to include Vietnam’s PetroVietnam, and allowed the three countries to explore for oil in an area covering 143,000 squares kilometers.

Some quarters have noted that the deal was a result of a precondition set by China for the Philippines to receive loans from the Chinese government.

Mr. Aquino's camp said that there was no deal for a joint exploration, according to Presidential spokesman Edwin Lacierda, but hinted that a Chinese company has expressed interest for a service contract to explore for oil in the seabed of the Spratly island. 

“I think that if ever that would take place, we have to take into consideration the regional consequences. There will be discussions on, for instance, taking into consideration the Code of Conduct. So that’s something that the Department of Foreign Affairs will have to be consulted first before we embark on any project as it is,” he said.

The general reactions from the Philippines were mixed. While some lauded the recent development, others took a cautious stand.

Philippine media focused on the gains of Mr. Aquino’s state visit here such as the Philippine-China $60-billion five-year trade and investment plan and China’s $7-billion investment in the Philippines.

But this was also seen as propaganda.

“The Spratlys dispute was glossed over in the talks between Mr. Aquino and Chinese leaders. The talks swept under the carpet the most dangerous issue in Southeast Asia,” wrote columnist Armando Doronila in the Philippine Daily Inquirer.