http://www.forbes.com/NOV 6, 2016 @ 07:16 PM 57,266
Panos Mourdoukoutas
The President of the Phillipines’ flip-flops over the South China Sea disputes have been crashing the country’s equities market, which is down 7.2 percent in the last month. Apparently, investors are concerned about the political and economic future of that nation, and the prospects for on-going economic integration of the region and the global economy — most notably China, which needs a market frontier for its manufacturing products.
That’s why the Philippines market sell-off has touched other markets in the region, like Vietnam’s and China’s own market.
Disputes in the South China Sea began as a regional tug of war between China and several neighbors, but they quickly turned into a showdown of economic and military power between China and the US, with each country eager to write its own navigation rules for the region.
Two years ago, China raised tensions by building artificial islands in the South China Sea. America countered that move by expanding its naval presence in disputed waters, and by advancing its missile capabilities in South Korea.
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