China Threatens to Withhold Emergency Energy from the Philippines Over US Military Drills Near Taiwan

China warned Tuesday that emergency energy supplies for the Philippines may not be forthcoming if Manila continues joint military exercises with the United States near Taiwan — moving from diplomatic objections to explicit economic pressure two days after Balikatan 2026 opened.

A People’s Daily editorial under the pen name “Zhong Sheng” — literally “Voice of China,” a byline the Party reserves for official foreign policy positions — accused Manila of hypocrisy for seeking emergency energy assistance from Beijing while hosting 17,000 foreign troops for live-fire drills near Taiwan. 

“These blatantly contradictory words and deeds expose the opportunistic nature of Philippine politicians,” the commentary said. “How can (the Philippines) justify acting with complete disregard for the interests of its neighbors and yet expect them to come to its aid in a critical moment?” Beijing called on Manila to “create the right conditions” for improved ties.

The Philippines declared a national energy emergency in late March after the Iran war and Hormuz closure cut fuel supply. Manila had been in talks with Beijing about emergency oil and gas; China holds the world’s largest strategic oil inventories. 

The Balikatan geography makes compliance nearly impossible: drills at Itbayat island, 155 kilometres from Taiwan, live-fire exercises in Zambales, 230 kilometres from Scarborough Shoal, the US Typhon missile system incorporated, Japan participating as a full partner for the first time.

Ruby Osman of the Tony Blair Institute said the Iran war’s energy disruption had proven out China’s long-running bet on strategic reserves, giving Beijing greater confidence to deploy supply access as geopolitical leverage — a pattern it has used before against Japan through critical mineral export controls.

For the Philippines, the pressure crystallises a tension President Ferdinand Marcos Jr. has already named: that a war over Taiwan would drag the country “kicking and screaming” into the conflict, and that there may be no neutral position left to occupy.



Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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