Philippines, China Commit to Working on Resolving Differences

China's Foreign Minister Qin Gang is welcomed by Philippine Foreign Secretary Enrique Manalo ahead of their meeting at the Diamond Hotel in Metro Manila on April 22, 2023. (Photo: AFP/Gerard Carreon)
China's Foreign Minister Qin Gang is welcomed by Philippine Foreign Secretary Enrique Manalo ahead of their meeting at the Diamond Hotel in Metro Manila on April 22, 2023. (Photo: AFP/Gerard Carreon)
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Philippines, China Commit to Working on Resolving Differences

China's Foreign Minister Qin Gang is welcomed by Philippine Foreign Secretary Enrique Manalo ahead of their meeting at the Diamond Hotel in Metro Manila on April 22, 2023. (Photo: AFP/Gerard Carreon)
China's Foreign Minister Qin Gang is welcomed by Philippine Foreign Secretary Enrique Manalo ahead of their meeting at the Diamond Hotel in Metro Manila on April 22, 2023. (Photo: AFP/Gerard Carreon)

The Philippines and China pledged on Saturday to work together to resolve their maritime differences in the South China Sea, where the two have competing claims, and to deepen bilateral ties.

Talks between the countries' foreign ministers mark the latest in a series of high-level meetings of the Philippines with leaders of the United States and China as the two superpowers battle for strategic advantage in the Indo-Pacific, Reuters reported.

Manila's relations with Beijing are more than just their differences over the South China Sea, Philippine Foreign Affairs Secretary Enrique Manalo said as he began talks with Chinese Foreign Minister Qin Gang in Manila.

"These differences should not prevent us from seeking ways of managing them effectively, especially with respect to enjoyment of rights of Filipinos, especially fishermen," Manalo said, adding that their livelihoods are undermined by incidents and actions in the waterway.

Since Philippine President Ferdinand Marcos Jr took office in June, the Philippines has filed dozens of diplomatic protests at the presence of Chinese fishing vessels and what it calls China's "aggressive actions" in the strategic waterway.

The two neighbors need to work together to continue a tradition of friendship, deepen cooperation and properly resolve differences, Qin said in his opening remarks.

Working together would help promote peace and stability of the region and the world, Qin said.

His visit comes just weeks after the Philippines announced the location of four additional US military bases, two of which are facing north towards Taiwan.

Qin is to meet Marcos later on Saturday, ahead of the president's meeting with US President Joe Biden in Washington in May.

More than 17,000 Philippine and US soldiers are conducting their largest ever joint military drills in the Southeast Asian country, drawing criticism from Beijing, Manila's rival in the South China Sea.

A landmark ruling by the Permanent Court of Arbitration in 2016 invalidated China's claims of sovereignty over almost all of the South China Sea, which sees the passage of about $3 trillion worth of ship-borne goods annually and is believed to be rich in minerals and oil-and-gas deposits.

Vietnam, Malaysia, Brunei, Indonesia and the Philippines have competing claims in portions of the waterway.



Israeli Finance Minister Says Banks Should Not Obey EU Sanctions on Settlers

20 July 2022, Israel, Barkan: Right-wing settlers march to build a settlement in the West Bank near Barkan. (dpa)
20 July 2022, Israel, Barkan: Right-wing settlers march to build a settlement in the West Bank near Barkan. (dpa)
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Israeli Finance Minister Says Banks Should Not Obey EU Sanctions on Settlers

20 July 2022, Israel, Barkan: Right-wing settlers march to build a settlement in the West Bank near Barkan. (dpa)
20 July 2022, Israel, Barkan: Right-wing settlers march to build a settlement in the West Bank near Barkan. (dpa)

Israel's Finance Minister Bezalel Smotrich on Thursday condemned the country's banks that have refused to provide services to Israeli settlers sanctioned by the European Union and warned they may have to pay compensation to them.

The EU last year imposed sanctions on five Israeli settlers for violence against Palestinians and Smotrich said there were reports of sanctions being considered against other settlers.

But in a letter to the banking supervisor, he said Israeli banks should not follow a "zero risk" policy since it leads to the abandonment of Israeli clients "under the guise of compliance with foreign sanctions."

In a statement quoting his letter to the regulator, Smotrich called on banks to use their legal, economic, and international strength to fight "unjust sanctions", Reuters reported.

"The banks’ enormous profits enable them to take measured risks on behalf of their clients — especially when it comes to a national moral injustice," Smotrich, who leads the far-right Religious Zionism party, said.

Should banks continue to comply with sanctions and harm clients, Smotrich said he intended to promote immediate legislation that would require banks to pay substantial compensation to affected customers.

He also intends to require the Bank of Israel itself to offer banking services to citizens targeted by sanctions.

Responding to the letter, the Bank of Israel said that while banks must comply with international sanctions to avoid an array of risks, a draft directive it published on Thursday aimed to ensure appropriate banking services were available for the affected customers.

"Circumventing foreign sanctions regimes through the Israeli banking system exposes banking corporations to multiple risks, including compliance risks, anti-money laundering and counter-terror financing risks, legal risks, and reputational risks," the central bank said.

But it said it has taken steps to comply with sanctions "without banks resorting to blanket refusals to serve such customers."

While the sanctions in question concern Israeli settlers, the EU is reviewing its broad pact governing its political and economic ties with Israel in the face of mounting international pressure on Israel amid complaints about the lack of humanitarian aid reaching Gaza in the wake of the war triggered by Hamas' Oct. 7, 2023 attack.