Philippines is "inviting wolves" by bringing US, Japan into South China Sea: expert

The Philippines' intention to bring the United States and Japan into South China Sea issues would lead to undesirable consequences, according to an expert in regional affairs.

China has urged the United States, Japan and the Philippines to stop playing bloc politics, stop interfering in China's internal affairs, and stop undermining regional peace and stability following Thursday's first ever U.S.-Japan-Philippines trilateral summit.

A joint statement from the summit hyped up issues in the East China Sea and the South China Sea, reiterated the United States' defense commitment to Japan and the Philippines, and expressed "serious concern" over Ren'ai Jiao (Ren'ai Reef).

The Nansha Qundao (Nansha Islands), which include the Ren'ai Jiao , have always been China's territory. In 1999, a Philippine military vessel was illegally "grounded" on Ren'ai Jiao. China immediately made representations to the Philippines, and the Philippines repeatedly pledged that it would tow the vessel away. Yet 25 years on, the vessel remains on Ren'ai Jiao and the Philippines is attempting to sneak in construction materials to fortify it and turn it into a permanent outpost.

"With the United States' support and encouragement, the Marcos administration constantly demonstrates opportunism and aggression, seeking to transform its illegally grounded military vessel on Ren'ai Jiao (Ren'ai Reef) into a permanent military outpost by bring in construction materials, in order to achieve permanent occupation of Ren'ai Jiao," said Ding Duo, deputy head of the Institute for Maritime Law and Policies under the National Institute of South China Sea Studies.

The Philippines' aggressive actions were backed by the United States and Japan, with the U.S. frequently bringing up its mutual defense treaty with the Philippines to threaten China and Japan announcing further supply of coast guard patrol boats and holding trilateral drills at the summit.

In the meantime, Philippine President Ferdinand Romualdez Marcos Jr. faces backlashes in Washington and from home, with protesters and critics accusing him of selling the Philippines' interests at the summit.

"The United States hopes to motivate its allies and partners to strengthen coordination and further contain and pressure China through maritime issues surrounding China. Japan still has a certain psychological discomfort with China's growing strength. It positions itself on the opposite side of China on many issues. The Philippines' intention is also very obvious, which is to try to obtain more benefits with the help of external forces such as the United States and Japan. But cajoling countries outside the region to get involved for selfish gains will not work, and history shows that those inviting wolves into their house end up bringing harms to themselves," Ding said.

Philippines is "inviting wolves" by bringing US, Japan into South China Sea: expert

Global gold demand, including over-the-counter (OTC) purchases, increased by 3 percent year on year in the first quarter of 2024 to 1,238 tons, marking the strongest first quarter since 2016, according to a report released by the World Gold Council on Tuesday.

The report revealed that gold jewelry consumption declined by 2 percent to 479 tons, but remained above the five-year average for the first quarter at 465 tons. Conversely, gold bar and coin demand surged by 3 percent to 312.3 tons.

"In the first quarter, the biggest gold market growth came from retail investment, primarily in gold coins and bars. This growth is not only seen in developed countries but also in emerging economies," said Wang Lixin, CEO of the World Gold Council China.

Wang also highlighted the notable increase in gold demand for technology applications, which typically experiences growth of around 1-2 percent annually.

"We observed a growth of over 10 percent in gold demand in the technology sector this quarter, mainly driven by artificial intelligence," added Wang.

The reports says healthy investment from the OTC market, persistent central bank buying, and higher demand from Asian buyers, helped drive the gold price to a record quarterly average of 2,070 U.S. dollars per ounce, which was 10 percent higher year on year and 5 percent higher quarter-on-quarter.

Additionally, global central banks increased their gold reserves by 290 tons in the first quarter, a one percent year-on-year growth and a 69 percent increase compared to the five-year quarterly average. This marks the highest first-quarter data since 2000.

The report also noted a gradual diversification in Chinese gold demand during the first quarter, despite the high gold prices in March.

Data shows that gold jewelry consumption in the Chinese market decreased by 6 percent year on year to 184 tons in the first quarter, while the demand for gold bars and coins reached 110 tons, representing a significant 68 percent rise year on year increase.

Furthermore, the report reveals that the People's Bank of China continued its gold purchases. By the end of the first quarter, China's official gold reserves reached 2,262 tons, increasing by 27 tons compared to the previous quarter.

Currently, gold accounts for 4.6 percent of China's total official foreign exchange reserves, reaching its highest historical level.

Global gold demand up 3 pct in Q1