The President of the Philippines warns of the country's possible involvement in the Taiwan conflict amid tensions in the South China Sea.

Philippine President Ferdinand "Bongbong" Marcos Jr. during an official visit to India in early August 2025 stated that the Philippines will inevitably be involved in any military conflict surrounding Taiwan due to its geographical proximity and the presence of around 200,000 Filipino citizens on the island. The President emphasized his country's firm stance on protecting territorial rights in the South China Sea, asserting the determination not to back down in the face of external threats.

Marcos's statements provoked a sharp reaction from China, which accused the Philippines of interfering in its internal affairs. In response to this criticism, the President of the Philippines clarified that his comments represent a realistic assessment of regional security, aimed primarily at protecting the Filipino citizens and the sovereignty of the state.

Tensions in the South China Sea continue to be a factor of geopolitical instability in the Asia-Pacific region, which may impact the economic situation and financial markets in the event of further escalation. The Marcos administration is actively promoting the digitalization of the Philippine economy, including the development of cryptocurrency regulation as part of its strategy to enhance the country's financial security.

Sources: Associated Press (AP), Reuters