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As the U.S. expands its bases, will the Philippines be able to maintain a balance with China?

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The Philippines granted the United States expanded access to its military bases on Thursday.

The defense ministries of both countries announced Washington would be granted access to four more regions under the 2014 Enhanced Defense Cooperation Agreement (EDCA).

The agreement was reached during a visit by U.S. Defense Secretary Lloyd Austin, who visited South Korea earlier this year to bolster deployment of advanced weapons such as fighter jets and bombers to the Korean Peninsula, also to deploy more military forces and weapons in the Philippines.

In a joint announcement, the Philippines and the United States agreed to accelerate the full implementation of the Enhanced Defense Cooperation Agreement, which aims to support combined training, exercises, and interoperability between the two countries.

As part of the agreement, the United States has allocated $82 million for infrastructure improvements at five existing EDCA sites and has expanded its military presence to four new regions in “strategic areas of the country,” according to the statement.

New bases target China

The statement did not specify where the new areas would be. The former Philippine military chief told Reuters that the United States had previously requested access to bases on the island of Palawan, which overlooks the disputed Spratly Islands in the South China Sea and the northern land mass of Luzon, the Philippines’ closest region to Taiwan.

Philippine military officials and defense experts said some government officials were concerned that news about these locations would anger China.

According to an analysis published in the Global Times, Luzon and Palawan are very close to the Taiwanese island of Nansha, respectively, and “the intention of targeting China could not be more obvious.”

More recently, U.S. forces have intensified and expanded joint training focusing on combat readiness and disaster response with Filipino troops on the nation’s west coast, which faces the South China Sea, and in its northern Luzon region.

Enhanced Defense Cooperation Agreement (EDCA)

The EDCA allows U.S. access to Philippine military bases for joint training, pre-positioning of equipment and the building of facilities such as runways, fuel storage and military housing, but not for a permanent presence.

Austin said: “This is not about permanent basing, but it is a big deal, it is a really big deal… This is an opportunity to increase our effectiveness, increase interoperability.”

The Philippines was home to two largest U.S. Navy and Air Force bases outside of the American mainland. However, after the Philippine Senate refused to extend the use of the bases, they were closed in the early 1990s.

Although American forces returned for large-scale combat exercises with Filipino troops under a 1999 Visiting Forces Agreement, they could not obtain a base. The Philippine Constitution forbids the permanent establishment of foreign troops and their involvement in local combat.

The 2014 EDCA allowed U.S. forces to pre-position equipment and return forces in Philippine military bases, but Marcos’ predecessor, Rodrigo Duterte, had suspended the practice to maintain closer ties with China.

After Marcos was elected president, Joe Biden was the first foreign leader to call to congratulate Marcos, and senior Washington officials visited the Philippines regularly.

Manila’s balance policy

Washington is keen to expand its security options in the Philippines against China, while Manila aims to strengthen its defenses against disputed territorial claims in the South China Sea and a possible escalation in the Taiwan Strait.

A senior White House official told the Financial Times the initiative was “part of their strategic efforts across the region,” stressing that it was very important to Biden.

The Philippines sees the United States as a crucial counterweight to China in the region, and Washington has pledged to come to the defense of the Philippines if Filipino forces, ships, or aircraft come under attack in the contested waters.

On the other hand, the Philippines is trying to pursue a policy of not taking sides between China, its largest trading partner, and the United States. Philippine President Marcos’ visit to China last month was an indication that Manila is seeking to maintain ties with Beijing. Marcos also reiterated his commitment to the “one China” policy in a recent private interview with the Financial Times.

That’s why Philippine officials insisted ahead of Austin’s visit that military cooperation with the United States “does not target any third party.”

The Philippines is critical to Washington

However, the revival of the defense relationship with Washington by Philippine President Marcos could change this balance policy. The U.S. is using the same stick on the Philippines that it uses on the Asia-Pacific countries – the “China threat”.

The Biden administration is pushing the idea that if Beijing challenges the Philippines’ control over the disputed islands in the South China Sea or attacks Taiwan, the Philippines will be at risk of becoming part of the battlefield.

In this context, Austin said during the visit that the United States and the Philippines are “committed to strengthening their mutual capacities to resist armed attack” and stressed that these defensive efforts are important against China’s influence on the South China Sea.

Lisa Curtis, an Indo-Pacific expert at the Washington-based CNAS think tank, also stressed that the Philippines’ position is critical to the entire U.S. alliance system in the Indo-Pacific. In the event of a dispute over Taiwan, Washington would certainly see Manila as a staging ground for logistical support and U.S. forces, Curtis said.

Meanwhile, the Philippine president is reportedly traveling to Japan next week to expand security and trade cooperation between Manila and Tokyo.

Beijing has voiced concerns about Marcos’ visit to Japan, according to two people familiar with the discussions, highlighting the challenge the Philippines faces in trying to balance its economic interests with China and its relations with the United States and its allies.

The extent to which the Philippines can successfully maintain the balance policy in the face of the attack attempt that the U.S. and NATO have pursued so far in the Asia-Pacific through the “Chinese threat” discourse remains a question.

ASIA

Trust issue: Pakistan and Afghanistan to boost up fraternal ties

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Pakistan’s Special Representative for Afghanistan, Ambassador Mohammad Sadiq, and his delegation, visited Kabul and held a series of talks with the top Taliban leadership, including interior and foreign ministries.

This is Sadiq’s first visit to Kabul after being assigned as Special Representative for Afghanistan and the reason for his visit was to enhance mutually beneficial cooperation in various fields and advance the fraternal ties between the two neighboring countries, Afghanistan and Pakistan.
Sadiq announced the trip on X, saying, “looking forward to meaningful discussions with Afghanistan’s interim ministers (Taliban officials) to strengthen mutually beneficial cooperation.”

During the trip, Sadiq first met with Sirajuddin Haqqani, the Taliban’s acting interior minister – who has lots of influence in Khost, Paktia and Paktika provinces. According to Pakistan, these provinces are the places of movement of Tehreek-e-Taliban Pakistan (TTP), and basically, Kabul and Islamabad relations deteriorated as Pakistan wants Afghanistan to smash on the movements of the TTP inside Afghan soil. However, the Taliban leadership says there are no TTP fighters in the country, and Taliban will not allow any group, including TTP to pose a threat to Afghanistan and to the regional countries.

During the meeting, Sadiq and Haqqani discussed a range of bilateral issues of common interest. Both sides agreed to strengthen bilateral cooperation in various fields to further enhance the fraternal relations between the two countries. The Afghan Ministry of Interior in a statement said that both sides discussed important topics for the improvement of relations between Afghanistan and Pakistan and the solution of existing problems. The Pakistani delegation also expressed their condolences on the assassination of Khalilur Rehman Haqqani, the uncle of Sirajuddin Haqqani and key member of the Haqqani network.

Sadiq first met with Interior Minister Sirajuddin Haqqain against diplomatic norms to first meet with Foreign Minister 

Khili Haqqani was the first Taliban official who entered Kabul when the Taliban overthrew the former Afghan government following withdrawal of US troops from Afghanistan after 20 years of presence. He has served as refugee minister since victory day on August 15 2021. He was killed by a Daesh suicide bomber inside his ministry compound.

Referring to the pessimism of the Taliban leader towards the Haqqani network, the former deputy of the European Union in Afghanistan, Michael Semple does not consider it unlikely that the members of the Taliban supreme leader were involved in the assassination of Khalil Haqqani. Michael Semple said that his assassination dealt a heavy blow to the Haqqani network and that the Taliban would likely pay a price for this.

The Haqqani family has denied the involvement of members of the Taliban supreme leader in the assassination of Khalil Haqqani. Haqqani family members insisted on the unity of the Taliban and the Haqqani family’s obedience to Hebatullah Akhundzadeh, the Taliban’s supreme leader. Their statements were made to deny rumors of differences or the involvement of people close to Hebatullah in Khalil Haqqanis assassination.

But Semple says that Hebatullah was particularly concerned about the Haqqani network’s contacts with Taliban opposition groups and foreign powers.

He added that Khalil Haqqani was more active in this field compared to other Taliban officials, because he had a political and social personality.

Semple said that Khalil Haqqani had connections with the Taliban opposition front and some foreign powers. According to him, although the Haqqani network, especially Sirajuddin Haqqani, have tried to convince the Taliban leader that they are aligned and united, Hebatullah has doubts about them.

He emphasized that Khalil Haqqani had contacts with Sirajuddin, which seemed “illegitimate” from Hebatullah’s point of view.” Sepmel reminded that Khalil Haqqani is not the first Taliban minister who was killed. During the first period of Taliban rule, Mullah Abdul Raqib was killed due to foreign contacts.

Former deputy of the European Union in Afghanistan underlined trust issue between Kandahar Taliban and the Haqqani’s 

The former diplomat. Sempel said that it is possible that the suicide bomber was a member of ISIS in the past, but he managed to assassinate Haqqani with the support of the Kandahar faction.

Sample clarified that the loss of Khalil Haqqani has put a serious blow to the Haqqani network, adding that Khalil Haqqani was one of the survivors of Jalaluddin Haqqani, the leader and founder of Haqqani network, who played a major role in the diplomacy of this network.

Pakistan Special Envoy Sadiq met with Foreign Minister Amir Khan Muttaqi, where they agreed to work together to further strengthen bilateral cooperation as well as for peace and progress in the region.

Meanwhile, Sadiq also met with Foreign Minister Amir Khan Muttaqi on Tuesday, where they held wide ranging discussions. “Agreed to work together to further strengthen bilateral cooperation as well as for peace and progress in the region,” Sadiq said.

The Afghan Foreign Ministry in a statement said both sides discussed bilateral relations between Afghanistan and Pakistan, enhancing diplomatic relations, trade, transit, and people-to-people relations.

Also, Sadiq met with Afghan traders and chamber representatives from across Afghanistan to discuss enhanced trade cooperation and economic ties, fostering a stronger bilateral relationship between Pakistan and Afghanistan.

The visit comes at a time where ties between Islamabad and Kabul have deteriorated in recent months, especially tensions have flared over the activities of the TTP, an armed group that has escalated attacks in Pakistan since the Taliban took control of Afghanistan in 2021.

Pakistani top officials, including Prime Minister and the country’s defense minister accused the Taliban of providing safe havens for TTP, an allegation the Taliban denied in strongest possible terms.

Pakistan says that Kabul allowed the TTP fighters to cross the border and carry attacks against the country’s security forces and border guards.

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China plans $411bn private treasury bond issuance in 2025

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Chinese authorities have approved a record issuance of 3 trillion yuan ($411 billion) in private treasury bonds for 2025, according to two sources cited by Reuters. The move signals Beijing’s commitment to using fiscal stimulus to address economic stagnation.

This represents a significant increase from the 1 trillion yuan issued this year and coincides with preparations for potential tariff hikes on Chinese imports as Donald Trump is expected to reassume the U.S. presidency in January.

The proceeds will target initiatives such as consumer subsidies, business equipment upgrades, and investments in innovation-driven sectors. According to the sources, who spoke anonymously due to the sensitivity of the issue, the plan underscores China’s proactive approach to offsetting deflationary pressures.

Officials from the State Council Information Office, Ministry of Finance, and National Development and Reform Commission (NDRC) did not immediately comment on the development.

Following the announcement, yields on China’s 10-year and 30-year treasury bonds rose by 1 basis point and 2 basis points, respectively. The planned issuance, the largest on record, demonstrates Beijing’s willingness to expand borrowing to stabilize the world’s second-largest economy.

China generally reserves ultra-long-term corporate bonds for extraordinary circumstances, reflecting the significance of this initiative.

Approximately 1.3 trillion yuan from the new issuance will fund “two major” and “two new” programs: A consumer subsidy program to encourage trade-ins for new vehicles and appliances, subsidies for large-scale business equipment upgrades, and infrastructure projects in critical sectors, including railways, airports, and farmland.

The NDRC reported that 70% of the proceeds from this year’s bond issuance funded major projects, while the remainder supported new schemes.

Another significant portion, exceeding 1 trillion yuan, will drive investments in advanced manufacturing, including electric vehicles, robotics, semiconductors, and green energy. Additionally, funds will recapitalize state-owned banks struggling with shrinking margins, declining profits, and rising non-performing loans.

The issuance will account for 2.4% of China’s 2023 GDP. For comparison, Beijing’s 2007 issuance of 1.55 trillion yuan represented 5.7% of GDP at the time.

The announcement follows the annual Central Economic Work Conference, where President Xi Jinping and senior officials outlined economic plans for 2025. The state media summary emphasized “steady economic growth,” raising the fiscal deficit ratio, and increasing government debt issuance, without detailing figures.

Recent Reuters reports indicate China may raise its budget deficit to a record 4% of GDP and aim for an economic growth target of around 5% next year.

China’s economy faces multiple headwinds, including a protracted property crisis, rising local government debt, and weak consumer demand. Exports, traditionally a growth driver, risk new U.S. tariffs of over 60%, threatening another economic lifeline.

Domestic consumption remains subdued, with households grappling with falling property values and minimal social safety nets. To counter weak demand, Beijing plans to expand its consumer and industrial equipment swap programs to more products and sectors.

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“Good” and “bad” armed groups

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These days, the topic of comparing the Taliban and Tahrir al-Sham (HTS) has become a hot topic in the media outlets and social networks. The head of HTS recently said that Syria will not turn into another Afghanistan, because both countries have different social and cultural situations and Afghanistan has tribal structures.

His words have provoked different reactions from Afghan social media users – some have confirmed these statements of Jolani, but some have opposed them. However, the words of the leader of the HTS delegation that Syria will not become another Afghanistan and his gentle and flexible approach to the people have attracted the attention of many.

Jolani has now become the next leader of Syria from the leadership of an old “terrorist” group, and both countries, including Russia, which supported Bashar Assad’s regime, also want political interaction with him. Although it is too early to believe all the words of Jolani, it is clear that he has so far introduced himself as a practical and moderate figure.

He has been able to gain the attention of the Syrian people and the media and be ahead of other Islamists. On the other side of the story, we are dealing with the Taliban, the group that in the last three years has only secretly invited people to follow them with the language of force and violence, including threats, beatings, arrests, torture, and murders. The Taliban came to reform the people they believed in, not to listen to the people’s demands through moderation and to respect the internationally accepted principles.

If we analyze the current situation of Syria and Afghanistan from the point of view of political realism, then we are faced with two different attitudes: one representative is the Tahrir al-Sham group led by Ahmed al-Shara and the other representative is the Taliban group led by Mullah Hibatullah.

“Bad” or “worse” “terrorists”, a common scourge of realism in today’s politics.

Both groups are hardline Islamic groups and have extensive backgrounds in “terrorism”, but their attitudes differ from each other. The first group tries to conform to the demands of the people and the world, while the second group stubbornly wants the people and the world to submit to their demands.

The first group wants to interact with the people and the world, but the second group insists that they will not interact.

HTS’s leader (L) and the Taliban Prime Minister (R)

The main fear of the Taliban and other ideological groups, whether they are right-wing or left-wing, is death. Based on this reason, in order to preserve their old beliefs and sacred values, which have become old since time and are no longer hurting the society in the process of change, they are willing to commit any kind of crime.

Some groups, such as Hayat Tahrir al-Sham, when they realize the failure of their long-term efforts to achieve their imaginary and ambitious goals, they come to the conclusion that without accepting flexibility and leaving aside reality for political stability, which is always changing, he has no other choice.

These groups, however outwardly, are trying to change, but all these efforts continue until their power bases are threatened.

For another example, if we compare Hayat Tahrir al-Sham with the Taliban, considering what we have seen in Syria in this short period of time, Hayat Tahrir al-Sham is considered a “good” armed group by the countries of the world – known as, while the Taliban have proved that they are “evil” in their three years of actions. “Good” armed groups like Jolani go along with the world and give up ideology, even if only temporarily.

He is a pragmatist and knows that the world is not going his way, and that he must submit to the ruling order of the world. Therefore, “good” armed groups are better than “bad” armed groups who never want to give up their ideological selfishness and be ready for compromise and reconciliation.

The existence of the worst, such as ISIS, makes the others ‘better’.

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