Philippine Merchandise Trade Performance (May 2024)
THE PHILIPPINES’ trade gap widened slightly in May, as exports and imports contracted on an annual basis, the statistics agency said on Wednesday. Read the full story.
PLDT completes VITRO data center structure
PLDT Inc., through its unit ePLDT, Inc., has completed the structure of its 50-megawatt (MW) hyperscale VITRO Sta. Rosa, its biggest data center to date, the company announced on Wednesday.
“VITRO Sta. Rosa is a landmark achievement for the PLDT Group and the Philippines. A lot of hyperscalers have already expressed their interest in co-locating in our facility,” ePLDT and VITRO, Inc. President and Chief Executive Officer Victor S. Genuino said in a statement.
The structural completion of VITRO Sta. Rosa will pave the way for power integration and energization, ePLDT said.
“With its structural completion, VITRO Sta. Rosa is completing another cornerstone in its development as it energizes the facility soon to welcome telcos, enterprises, and hyperscalers,” it added.
VITRO Sta. Rosa is said to be the country’s largest data center campus in the country, sitting on a five-hectare lot in Sta. Rosa, Laguna. According to its website, Vitro Sta. Rosa will have an initial capacity of 14 MW this year, which can be expanded to 50 MW once fully operational.
The Laguna data center is ePLDT’s 11th data center.
VITRO Sta. Rosa is designed to use less energy while also using the latest innovation in cooling and power redundancy — the highest network level with at least three fiber routes from PLDT and other telecommunication providers.
Earlier this year, PLDT said it was planning to scale up the capacity of its data centers.
The company said that its planned 12th data center may double the capacity of VITRO Sta. Rosa, while it is still in the site selection process for its 13th and 14th data centers.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose
Evolution to drive Philippine digital economy’s growth
THE PHILIPPINE digital economy is poised for further growth as platforms continue to evolve, driven by a young population and growing demand for online solutions, industry executives said.
“With the average age for Filipinos at 25, the growth of online payments, and consumer behavior wanting more convenience and more speed, we value time more,” Prosperna Chief Executive Office and Founder Dennis Velasco said during a panel discussion at KPMG’s Innovation Summit 2024 held on July 4.
“People are hungry to find more ways — not just via e-commerce — to save time and money,” he said.
Prosperna is an e-commerce platform that allows businesses to set up online stores to sell their products, accept payments, and book shipping.
Merchants and brands are embracing multi-channel commerce rapidly, Mr. Velasco added.
“Brands and products need to be everywhere — Facebook, Instagram, Lazada, Shopee, TikTok, — you name it,” he said. “Just like in traditional retail, instead of them having to input a lot of money on expensive rent, they can access more customers in multiple channels online.”
Payment gateway Dragonpay, for its part, found ways to integrate several payment methods into its platform and then offer a single application programming interface to merchants or the seller.
This is meant to help serve customers who do not have credit cards, Dragonpay CEO Dick Chiang said during the same discussion.
“We tried to solve the problem of financial inclusion by looking out there and figuring out what is everybody doing. Are they going to an LBC counter, Cebuana counter? Are they paying cash over the counter?,” Mr. Chang said.
Electronic platform GCash is built around problem-solving and providing consumers easier access to financial services, Mynt Chief Finance Officer Tek Olaño said. Mynt or Globe Fintech Innovations, Inc. is the parent firm of GCash.
“We always put the purpose of the company at the center of the project. We want financial innovation. We want financial health. We want to provide financial access to the Filipinos,” Mr. Olaño said.
“A lot of companies talk about artificial intelligence (AI) or wanting to be data-driven and customer-centric, but leadership makes a difference in embracing digital transformation,” Security Bank Corp. Senior Vice-President and Head of Data Science & AI Center of Excellence Criselda Q. De Sagun-Madrid said. — A.R.A. Inosante
New cardholders drive growth in credit cards
THE PHILIPPINE credit card market continued to grow in the fourth quarter of 2023, mainly driven by new cardholders, a study by TransUnion showed.
Total outstanding credit card volumes in the Philippines increased to 11.2 million in the fourth quarter of 2023 from 9.3 million in the same period in 2022, TransUnion said in a statement on Wednesday.
Credit card penetration, or the percentage of adults holding at least one credit card, reached over 15% of Filipino adults in the same period.
“Together, these trends represent a growth of around 20% in both overall volume and penetration rate in the last year,” it said.
TransUnion said its study’s findings were consistent with data from the Credit Card Association of the Philippines (CCAP). CCAP data showed credit card spending increased by 39% to P853 billion in the first half of 2023, faster than the 29% increase in the comparable year-ago period.
“The trends in card originations, total volume, penetration, and spending all indicate a promising growth trajectory for the credit card market in the country,” TransUnion said.
“The credit card market in the Philippines will continue to experience growth as demand remains high, especially amongst younger consumers. Data from TransUnion clearly shows that the younger generation of Filipinos, particularly Gen Z, are quickly emerging as a cornerstone for future market growth. This generation places a higher importance on accessing credit and lending products to achieve their financial goals. As more Gen Z consumers reach adulthood, we expect their share of the credit market to continue increasing,” TransUnion Asia Pacific Principal of Research and Consulting Weihan Sun said.
The firm’s study showed that Gen Z Filipinos contributed significantly to the increase in credit card originations.
“The percentage share of overall originations among Gen Z Filipinos has more than doubled over the past five years — up from just under one in 10 (9%) in Q3 2019 to more than one in five (22%) in Q3 2023. This share will likely increase as more Gen Z consumers reach adulthood,” it said. “Gen Z Filipinos also comprised a greater share of the new-to-card segment of borrowers — they made up one-third (33%) of all new-to-card borrowers in 2023.”
Overall, new-to-card consumers accounted for 30% of all outstanding credit card balances during the first nine months of 2023, up from just 19% in 2019 or before the coronavirus pandemic.
Lenders can tap this market through value-added services such as reward points, installment payment facilities, and discounts associated with their card products, TransUnion said.
“While it’s an important factor for potential growth opportunities among lenders, bringing new-to-card consumers into the formal financial system can also drive greater financial inclusion by catering to a larger demographic of borrowers. To that end, TransUnion Philippines remains committed to finding innovative ways to use alternative data to help more consumers access the credit they need,” Mr. Sun said.
“We are focused on helping Filipinos who were previously deemed invisible by the formal financial system to access the credit they need to broaden their horizons, build wealth and attain greater flexibility, contributing to the development of the country as a whole,” he added.
By gender, male borrowers accounted for 60% of credit card originations while females comprised the remaining 40%.
The number of active credit card accounts was likewise dominated by men with a 61% share.
“This ratio has remained relatively consistent over the past five years, highlighting a strong need to focus more on extending financial inclusion among female consumers,” TransUnion said.
“As TransUnion continues its pursuit of financial inclusion in the Philippines, closing the gender gap among credit card borrowers also emerges as a promising avenue for growth,” Mr. Sun said. “Lenders should consider offerings specifically tailored to female consumers to foster a more financially inclusive credit market, which at the same time would help them to further capitalize on the growth potential of an expanding market.” — A.M.C. Sy
On the sidelines
AT THIS TIME of the NBA season already ended in the US, the search for coaches seems frenzied. It seems the decision to fire an existing coach is an easy decision for teams not making the playoffs or exiting too early in them. Why blame the marquee players when you can dump the coach?
While the coach doesn’t score any points, he’s the easiest to blame for any loss. It’s not just sports that require coaches. Corporate organizations too need help from the sidelines with the use of management consultants. Then there is the little-known niche in business advice which is “executive coaching.”
This special consultant has for a client not a company but only its CEO for “one-on-one” evaluation and guidance. In a period of four to six weeks, this corporate trainer watches his CEO from the sidelines. Much like a coach for basketball, he observes how the CEO undergoes fitness training, dribbles the ball through midcourt in time, makes foul shots, assists, trash talks, plays under pressure (down 15 points in Q4), and accept defeats — next season will be better, this is a learning experience.
CEOs are used to giving orders. Can they also sit still and listen to a coach evaluating their plays? When is the best time to recruit an executive coach? Probably not during a corporate crisis when the phone can’t stop ringing and there’s hardly time to sit still and listen to leadership principles. A quiet first quarter when the previous year’s numbers are being finalized (or massaged) may offer the right break.
The coach should not be part of a CEO’s management team. Being on the inside may affect the advice he offers when he may have his own agenda to promote. The ideal coach is retired from his corporate job, had a good and successful career behind him, preferably even residing in another country, making him an objective observer. A stranger with no professional ties to his client is ideal.
The CEO is deemed too close to the game, and so needs the perspective of someone on the sidelines who has also played this game. Like a retreat master, the coach raises basic questions which the CEO can meditate on. The counseling sessions can take the form of Ignatian spiritual exercises — is there a corporate after-life?
What role should the CEO play? This goes beyond a job description. It’s about the added value a particular CEO brings to his organization. Is he a foreman who gives instructions to the team on how to build the edifice? Does he write the play and cast the actors in particular roles and direct their performance? (Bring your voice down a little.) What are his priorities? Does the in-box dictate his schedule? Does he have an exit strategy for himself? Is he a good mentor?
Some questions deal with the company. Where does the CEO want to bring his organization in the next three years? What does he need to accomplish as CEO to make this happen? Does he consider himself irreplaceable?
Since the client of an executive coach also has a social side, some questions relate to personal issues. How much time does the CEO devote to personal growth? Has he considered what to do when he retires? Does he have a consuming passion outside work, like singing operatic numbers?
The final report after the engagement may just be verbal. It highlights the client’s strengths (he doesn’t sleep) and areas for improvement (he is never fully awake).
An executive coach must be detached. Since he is not out to curry favor with his client, he can be brutally frank. (The client does not always listen, anyway.) After the wrap-up session, the coach will be taking a plane out, not expecting any job offer. His effectiveness lies in his being outside the loop with no intention of being in it. A CEO too needs someone to give unbiased pointers and raise questions subordinates do not care to bring up. Anyway, the coach does not give absolution.
Even young CEOs need to be coached. Sometimes, this is done by informal mentors who may be related, as in the dynastic appointments in family corporations.
Getting views from a sideline coach can give better perspectives on the corporate game… and what to do to when it’s over.
Tony Samson is chairman and CEO of TOUCH xda
Alec Baldwin manslaughter trial revolves around Wild West gun
SANTA FE, New Mexico — The inner workings of a Colt .45 “Peacemaker” revolver, a symbol of the American Wild West, have become the focus of Alec Baldwin’s trial for the 2021 fatal shooting of Rust cinematographer Halyna Hutchins on a New Mexico movie set.
Jury selection was set to begin on Tuesday nearly three years after Mr. Baldwin was directed to point his gun at Ms. Hutchins as she set up a camera shot inside a movie-set church about 20 miles southwest of Santa Fe.
Ms. Hutchin’s 2021 death was Hollywood’s first on-set shooting fatality in three decades and momentarily sparked calls to end the widespread use of real firearms on movie sets.
Ms. Baldwin’s involuntary manslaughter trial in a modern, brown-stucco courthouse in downtown Santa Fe is expected to last eight days and run to July 19.
It is remarkable in that there is little or no precedent in US history for an actor to face criminal prosecution for an on-set shooting death. The 30 Rock actor could be imprisoned for up to 18 months if found guilty.
In March, Rust armorer Hannah Gutierrez, the set employee in charge of firearm safety, was found guilty of involuntary manslaughter by a Santa Fe, New Mexico, jury for mistakenly loading a live round into Mr. Baldwin’s gun. Ms. Gutierrez received the maximum 18-month sentence.
Legal analysts and firearms specialists had long expected Mr. Baldwin’s case to hinge on whether he should have inspected the gun after he was told it was “cold,” an industry term meaning it was empty or contained inert, dummy rounds.
But in a pivotal interview in December 2021, Mr. Baldwin told ABC News’ George Stephanopoulos he did not pull the trigger, sending prosecutors and defense lawyers into the world of forensic firearms testing.
Mr. Baldwin, 66, said he cocked the reproduction 1873 Single Action Army pistol before it fired a live round that killed the rising-star cinematographer and wounded director Joel Souza.
Santa Fe police set out to test Mr. Baldwin’s claims. An FBI examination found the gun was worked normally and would not fire at full cock without the trigger pulled. State prosecutors filed charges thereafter, alleging Mr. Baldwin was lying about the trigger.
Mr. Baldwin’s legal team last year countered with photographic evidence the Italian-made Pietta gun’s full-cock notch had been filed down, making it easier to fire. That allowed a mechanical failure or “accidental discharge” without a trigger pull, they said.
UPHILL BATTLE
Whether the revolver was modified or not, legal experts see an uphill battle for the prosecution to prove Mr. Baldwin knew he could kill Ms. Hutchins but showed willful disregard to the risk — a level of criminal negligence required for an involuntary manslaughter conviction.
“The gun is probably the best defense, because there is no way to definitively say what the condition of the firearm was,” said gun historian Ashley Hlebinsky who is executive director of the University of Wyoming Firearms Research Center.
Prosecutors last year dropped charges, convinced the gun was modified, only to have a grand jury reinstate them in January after independent firearms expert Lucien Haag confirmed findings of the FBI examination.
The FBI destroyed the gun during testing and the actor’s lawyers said they were left with no way to prove it was modified.
“The worst evidence against Baldwin is the FBI ballistics report that says he pulled the trigger, and his ABC interview where he said he didn’t,” said Neama Rahmani, a Los Angeles trial attorney and former federal prosecutor.
Another possible hurdle for the prosecution is persuading jurors Mr. Baldwin is guilty of criminal negligence after Ms. Gutierrez and first assistant director Dave Halls were convicted for the shooting. Halls accepted blame in a plea deal, acknowledging he did not check rounds in Mr. Baldwin’s gun. He was convicted on a misdemeanor charge and given a six-month suspended sentence.
“Juries have difficulty with the idea that people can share guilt,” said University of New Mexico law professor Joshua Kastenburg, a former lawyer and judge in the US Air Force.
Still, jurors may not buy Mr. Baldwin’s argument that, as an actor, he was not responsible for firearms safety and relied on set experts like Ms. Gutierrez and Mr. Halls.
Gun ownership is common in the Southwest United States where there is a cultural norm to check a weapon and never point it at someone and pull the trigger, according to Hlebinsky.
Then there is Mr. Baldwin’s on-set behavior.
Using videos and photos from Rust filming, state prosecutor Morrissey will try to show Mr. Baldwin was a man with “no control of his emotions,” whose “off script” firing of guns and pointing them at crew contributed to a collapse in firearms safety, according to court filings.
The two other most powerful people on the set, Souza and Halls, are likely to defend the actor. Both have been called as witnesses by the defense and prosecution, respectively.
During Ms. Gutierrez’s trial, Mr. Souza and Mr. Halls dismissed Mr. Baldwin’s on-set antics as typical of high-powered actors.
Mr. Baldwin’s best defense may be doubts his lawyers can sow about the workings of the pistol, according to Hlebinsky.
“I don’t think anyone can say 100% what happened,” said the firearms historian, who has acted as an expert in court cases on single action Colt. 45 type revolvers similar to Mr. Baldwin’s. — Reuters
MORE Power eyes P1-B investment to boost Bohol services
By Justine Irish D. Tabile, Reporter
ILOILO CITY — Razon-led power distributor MORE Electric and Power Corp. (MORE Power) is looking to invest P1 billion in Bohol to enhance services in the area, its top official said.
On the sidelines of the company’s facility tour on Monday, MORE Power President and Chief Executive Officer Roel Z. Castro said that an investment of one billion pesos over the next four years would be “doable” to improve services in the area.
“Bohol is not as big as Iloilo, and when I was looking at the system, it’s not totally damaged, but it definitely needs improvement, so I am looking at about a billion (in investment),” said Mr. Castro in a mix of English and Filipino.
Mr. Castro said that the investment will cover the installation of automatic circuit reclosers (ACRs), which will ensure continuity of electric service to customers.
“Most of them (electricity distribution infrastructure) do not have ACRs, and ACRs can avert 98–99% of outages. So, the installation of those will immediately bring improvement,” he added.
A part of the investment, he said, will go to establishing a 24/7 helpline in Bohol that will address customer concerns promptly.
“Their helpline is not that responsive yet. Here in Iloilo, if there is one thing that we really made sure of from the first day, it is our response rate, and you will see that even now,” he added.
In April, SPC Power Corp. announced that its board of directors had cleared the sale of the company’s share in Bohol Light Co. to MORE Power’s subsidiary Primelectric Holdings, Inc.
SPC Power holds 29.93 million shares in the power distribution utility in Tagbilaran City, which it sold at P6.67 apiece, totaling P199.5 million.
For Negros Occidental, Mr. Castro said that they are ready to start operating but are still waiting for their franchise to be signed.
“The bill is in Malacañang, and I think if the president doesn’t sign it, it will lapse into law by the end of July,” he said.
MORE Power, through Primelectric, entered a joint venture with Central Negros Electric Cooperative, Inc. (Ceneco) last year to address power issues in the province.
Meanwhile, MORE Power’s affiliate, Negros Electric and Power Corp. (NEPC), is seeking the passage of House Bill 9805, which will grant it a congressional franchise to provide services in the area.
NEPC is structured as a 70-30 joint venture between Primelectric and Ceneco, respectively.
The bill outlines the transfer of the franchise from Ceneco to NEPC, which will be effected via a Primelectric investment in Ceneco.
Ceneco distributes electricity to households and establishments in the cities of Bacolod, Talisay, Silay, and Bago and the municipalities of Murcia and Don Salvador Benedicto.
Once granted the franchise, Mr. Castro said MORE Power will apply for a certificate of public convenience and necessity (CPCN).
“I don’t know how long the ERC (Energy Regulatory Commission) will take to approve the CPCN, but we will do an early application so that they are able to go through the requirements already,” he said.
“But internally, we are ready now. We made sure that the systems, people, form, permits, and logistics were ready,” he added.
MORE Power’s initial investment to buy the Negros Occidental distribution system was P2 billion, said Mr. Castro.
“And then we are readying another P2.1-2.5 billion for the next five years for the improvement,” he added.
Global PC shipments rise in second quarter, with Apple seeing biggest jump, IDC says
GLOBAL shipments of personal computers rose by 3% in the second quarter, helped by demand for artificial intelligence (AI)-capable devices, with Apple seeing the biggest growth among PC makers, preliminary data from research firm IDC showed on Tuesday.
PC shipments reached 64.9 million units in the three months ended June, marking a second straight quarter of growth after two years of decline, the report said.
According to International Data Corp. (IDC), Apple’s shipments jumped 20.8% from the second quarter of 2023, the biggest rise among global PC makers, followed by a gain of 13.7% by Acer Group.
The market for PCs is expected to rebound from a lull in orders following the pandemic-driven buying spree.
Two consecutive quarters of growth, the market hype around artificial intelligence PCs, and a commercial refresh cycle seem to be what the PC market needed, said Ryan Reith, group vice-president at IDC’s Worldwide Device Trackers.
“The buzz is clearly around AI, but a lot is happening with non-AI PC purchasing to make this mature market show signs of positivity.”
However, weak results in China continued to hold the market back, IDC said, adding that excluding the country, worldwide shipments grew more than 5% in the quarter year over year.
China’s Lenovo Group saw the highest market share of 22.7%, followed by HP with 21.1%.
Dell Technologies’ market share was at 15.5% while its shipments fell 2.4%. — Reuters
Net Foreign Direct Investment (April 2024)
THE PHILIPPINES’ foreign direct investment (FDI) net inflows slumped to a 10-month low in April, the Bangko Sentral ng Pilipinas (BSP) reported on Wednesday. Read the full story.
PSEi member stocks performed — July 10, 2024
Here’s a quick glance at how PSEi stocks fared on Wednesday, July 10, 2024.
Marcos greenlights P23-billion TPLEx extension, Upper Wawa Dam project
THE PHILIPPINE government on Wednesday greenlighted an expressway extension project spanning the provinces of Tarlac, Pangasinan and La Union, which it said would boost connectivity among the agriculture, industry and tourism sectors in the country’s north.
President Ferdinand R. Marcos, Jr. led the contract signing for the P23-billion Tarlac-Pangasinan-La Union Expressway (TPLEx) extension project.
The 59.4-kilometer, four-lane toll road will start from the last exit of TPLEx in Rosario, La Union and end in San Juan, La Union.
“Aside from bringing in tourists and economic activities more quickly to the northern part of the country, it will also bring resources and food faster to the southern parts of Luzon,” Mr. Marcos said in a speech.
“We also expect to forge value-adding partnerships among agriculture, industry and tourism enterprises in the area as it links vital regional corridors and hubs. This will, of course, generate a significant number of decent jobs and more opportunities for all,” he added.
The project, which aims to boost economic growth along the expressway corridor, seeks to cut travel time from Rosario to San Juan, La Union to about 40 minutes from one-and-a-half hours.
It will provide high-quality roadway infrastructure between the Ilocos and Cordillera regions, Central Luzon and Metro Manila,” according to a project document.
“It will accelerate the development of, or encourage the establishment of, new growth hubs in Region I and nearby regions,” it added.
Without the project, the MacArthur Highway is projected to have “high-level traffic” by 2025.
San Miguel Holdings Corp. is the proponent of public-private partnership project.
The P23.36-billion estimated cost of the project is exclusive of financing fees worth P4.16 billion.
The project’s first segment (18.5 km), which covers Rosario to Tubao, La Union, is targeted to be finished by 2028.
“I appeal to San Miguel Holdings Corp. to complete the TPLEx extension segment 1 by 2028 and all other sections as scheduled,” Mr. Marcos said.
The second segment (23.1 km) covers Tubao to Naguilian, La Union and is expected to be built by 2027, while the last segment (17.8 km) covers Naguilian to San Juan, La Union and is targeted to begin by 2028.
Also on Wednesday, Mr. Marcos led the impounding ceremony for a dam project in Rizal province that is expected to increase water supply in Metro Manila by over 400 million liters daily as part of a wider effort to ensure the climate-vulnerable country’s water security.
The 450-hectare Upper Wawa Dam project — the second phase of the Wawa Bulk Water Supply project — would increase water supply to Metro Manila and nearby areas to 438 million liters per day from 80 million by the end of 2025, he said in a speech.
The first phase, the Tayabasan Weir, has been operational since October 2022.
“These 438 to 710 million liters per day translate to supporting the water supply needs of about 2.2 to 3.5 million Filipinos in the MWSS (Metropolitan Waterworks and Sewerage System) service area,” Mr. Marcos said.
“The Upper Wawa Dam will be the biggest water source to be built in the country in over 50 years, second only to the Angat Dam,” he said. — Kyle Aristophere T. Atienza
Chinese carrier sails close to Philippines on way to Pacific drills
TAIPEI — The Chinese aircraft carrier Shandong passed close to northern Philippines on its way to drills in the Pacific, Taiwan’s Defense minister said on Wednesday, as Taipei reported dozens of warplanes joining the ship for exercises.
The maneuvering of the carrier through waters closer to the Philippines than to Taiwan comes during a period of rising tensions between Beijing and Manila over their South China Sea dispute.
Taiwan, which China claims as its own territory, keeps a close watch on all Chinese movements given the daily military activity around the island.
Taiwan’s Defense ministry said starting around dawn on Wednesday, it had detected 36 Chinese military aircraft, including J-16 fighters and nuclear-capable H-6 bombers, flying to the south and southeast of the island heading to the Western Pacific to carry out drills with the Shandong.
Speaking to reporters in Parliament shortly before his ministry announced details of the latest mission by the Shandong, commissioned by China in 2019, Taiwan Defense Minister Wellington Koo said they had a “full grasp” of the ship’s movements.
“It did not pass through the Bashi Channel,” he said, referring to the waterway that separates Taiwan from the Philippines and is the usual route Chinese warships and warplanes take when they head into the Pacific.
“It went further south, through the Balintang Channel, to the Western Pacific,” Mr. Koo added, a waterway between the Philippines’ Batanes and Babuyan Islands.
China’s Defense ministry did not immediately respond to a request for comment.
The Philippine military said it was concerned with the deployment of the Chinese carrier group.
“We emphasize the importance of maintaining peace and stability in the region and urge all parties to adhere to international laws and norms,” spokesperson Francel Margareth Padilla said.
The Philippines is involved in a bitter standoff with China over the disputed Second Thomas Shoal in the South China Sea.
Late Tuesday, Japan’s Self Defense Forces said they detected the Shandong along with an escort of two missile destroyers and a frigate about 500 km (310 miles) south of its Okinawa islands.
Two Japanese navy ships were observing their movements while Japanese fighter jets scrambled in response to the aircraft launched by the carrier, it said in a statement.
Taiwan earlier reported the Shandong operating near the island, including in December when it passed through the Taiwan Strait just weeks ahead of Taiwanese elections.
Taiwan President Lai Ching-te told the new de facto US ambassador to Taipei, Raymond Greene, on Wednesday that his government would strive to maintain the status quo in the Taiwan Strait “in the face of China’s repeated challenges and attempts to change it.”
Mr. Greene highlighted to Mr. Lai the US commitment to support Taiwan’s ability to defend itself, according to a statement from the American Institute in Taiwan.
The United States is Taiwan’s most important arms supplier, despite the lack of formal diplomatic ties.
Taiwan holds its annual Han Kuang war games starting July 22, and China has stepped up its own activities ahead of that.
Since the start of this month, Taiwan has reported detecting a total of more than 270 Chinese military aircraft operating around the island, as well as two Chinese “joint combat readiness patrols” with warplanes and warships.
One security source, who is familiar with Chinese deployments in the region, told Reuters the better weather of the summer months was when China traditionally carries out drills, but noted the “unusual” uptick in recent movements.
“The security situation around Taiwan is worrying,” the source added, speaking on condition of anonymity as they were not authorized to comment publicly.
China has made no secret of its dislike of Mr. Lai, and carried out two days of war games shortly after he took office in May.
China says he is a “separatist” and has rebuffed his repeated offers of talks. Mr. Lai rejects Beijing’s sovereignty claims, saying only Taiwan’s people can decide their future.
‘HUMANITARIAN GROUNDS’
Meanwhile, China’s coast guard said it had on humanitarian grounds “allowed” the Philippines to evacuate a person who had fallen ill on a rusting warship beached on the Second Thomas Shoal, a claim Manila’s coast guard said was “ridiculous.”
“This statement confirms their illegal deployment of vessels within our EEZ (exclusive economic zone) and highlights their government’s view that the preservation of human life and welfare requires approval,” Philippine Coast Guard (PCG) spokesman Jay Tristan Tarriela said on X.
In a statement, the Chinese Coast Guard said it had monitored the entire rescue operation on Sunday, which a spokesperson said was made at the request of the Philippines.
The Philippine coast guard then reported “numerous obstructing and delaying maneuvers” by China’s coast guard while it carried out the medical evacuation.
A month ago, the PCG accused its Chinese counterpart of blocking a medical evacuation from the warship, calling the actions “barbaric and inhumane”.
China’s foreign ministry said the same day that China will allow the Philippines to deliver supplies and evacuate personnel if Manila notifies Beijing ahead of a mission. The Philippines has soldiers living aboard a rusty, aging warship on Second Thomas Shoal, which Manila grounded in 1999 to reinforce its sea claims.
China’s navy has clashed several times with Philippines forces seeking to resupply the grounded ship.
China claims most of the South China Sea, a key conduit for $3 trillion of annual ship-borne trade, as its own territory. Beijing rejects the 2016 ruling by The Hague-based Permanent Court of Arbitration which said its expansive maritime claims had no legal basis. — Reuters