China and the Philippines pledge to keep talking as Wang Yi warns Manila against crossing red lines

Philippine Foreign Affairs Secretary Ma. Theresa Lazaro spoke at length by phone with Chinese Foreign Minister Wang Yi, and the two sides pledged to maintain dialogue despite tensions, the Philippine foreign ministry said on Wednesday¹. The Philippines and China agreed to properly manage their differences, according to the Philippine side’s account of the talks¹⁰. Lazaro said the call covered the direction of relations between the two countries⁶.

Wang warned his Philippine counterpart about what he called interference in the relationship and urged caution over the South China Sea². China told the Philippines to stop its politicians from crossing “red lines”⁵. Beijing accused Philippine politicians of “intolerable” conduct as tensions escalate⁸.

According to China’s government, Wang said on Tuesday during the call that China’s resolve to safeguard its sovereignty and territorial integrity remains unwavering³. China’s foreign minister also urged the Philippine side to rein in “relevant individuals” and said its resolve to achieve national reunification is unwavering⁷.

Why it matters to investors

The call comes amid deepening maritime disputes between the two countries in the South China Sea⁴. The two Asian nations have long been at loggerheads over competing claims there, and tensions have risen in recent weeks⁵. Both sides chose to keep a channel open even as Beijing’s language hardened^1,2.

Taiwan is part of the friction. Beijing sees Taiwan as part of China to be reunited by force if necessary, a position that frames its accusations against Philippine politicians⁸. China’s foreign minister linked his warning to Manila to that reunification goal⁷.

According to the Chinese account of the call, Lazaro told Wang the Philippines highly values its relationship with China and seeks a stable and predictable one, while Wang called on Manila to adopt a rational China policy⁹.

What to watch

The test of the pledge is whether the agreement to manage differences holds at sea, given the rise in tensions over recent weeks^5,10. Further Chinese statements naming Philippine politicians would signal that Beijing’s demand to rein in “relevant individuals” has not been met^7,8.

Both governments described the call in their own terms: Manila stressed dialogue and managing differences, and Beijing stressed sovereignty and red lines^1,3. How each side acts on those accounts in the coming weeks will show whether the call has eased tensions or simply restated them^2,6.