A decade after a landmark legal ruling that Beijing chose to ignore, President Marcos gathered the Philippines' military leadership at Camp Aguinaldo to reaffirm a harder posture — one that pairs diplomacy with deterrence, and legal vindication with the credible weight of force. The directive reflects a truth older than international law: that rights undefended can become rights surrendered. In the contested waters of the West Philippine Sea, and in the quieter theaters of foreign influence operations, the Philippines is choosing to answer ambiguity with resolve.
Manila Bulletin
· Jul 08, 2026
· security
· 3 min read
High
Sourcing: Verified
Marcos orders AFP to bolster external defense, counter Chinese malign influence
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War & Conflict
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Bias & Framing
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Geopolitical Impact
🌎
Philippines escalates counter-China strategy, directing military to defend territory and counter Beijing's influence operations amid West Philippine Sea tensions.
Escalation Risk
moderate
Confidence
HIGH
Philippines
China
West Philippine Sea
Southeast Asia
Indo-Pacific
Philippines strengthening military posture and explicitly countering Chinese influence operations, signaling reduced deference to Beijing. Marcos administration hardening stance on territorial defense and foreign interference. China's United Front Work Department activities facing direct institutional pushback. Regional balance shifting toward U.S.-aligned Indo-Pacific security architecture.
Similar to Vietnam's 2016 pivot toward U.S. alignment following arbitral tribunal ruling against China; Philippines now following comparable trajectory of legal vindication followed by military-diplomatic assertiveness.
Economic Lens
📈
Philippines increases military spending and defense posture against Chinese influence, potentially raising regional tensions and defense sector investments while creating uncertainty for trade and foreign investment.
Market Signal
mixed
Confidence
MED
Defense and military equipment
Aerospace and defense manufacturing
International trade and shipping
Tourism
Foreign direct investment
Energy and natural resources extraction
Consumers may face higher taxes to fund increased defense spending, potential supply chain disruptions affecting import prices, and reduced foreign investment could limit job creation and wage growth in non-defense sectors.
Likely increased defense budget allocations, potential trade restrictions or retaliatory measures from China, closer alignment with US and allied nations on security matters, possible regulatory changes affecting Chinese investments and operations in Philippines, and strengthened maritime security enforcement.