China, Philippines Clash Again in South China Sea

Watch on YouTube ↗  |  July 21, 2026 at 13:57  |  3:57  |  Bloomberg Markets

Summary

Bloomberg's Minmin Low reports from Manila on a renewed clash between Chinese and Philippine forces at the Second Thomas Shoal in the South China Sea, where both sides accused the other of aggression. The incident comes just ahead of face-to-face ASEAN foreign ministers' talks between China and the Philippines, during which South China Sea tensions, joint oil and gas exploration, and the Philippines' stance on Taiwan are likely to be discussed. The visit of U.S. Secretary of State Marco Rubio to Manila adds another layer to the geopolitical backdrop.

  • Philippines accuses China Coast Guard of striking a Navy serviceman with a baton at Second Thomas Shoal; China accuses Philippines of ramming and paddle attacks.
  • Both sides released conflicting videos of the incident; a 'he said, she said' situation.
  • The clash occurs just before a scheduled ASEAN foreign ministers' meeting between Chinese Foreign Minister Wang Yi and his Philippine counterpart.
  • The Philippines signals openness to joint oil and gas exploration with China in disputed waters, even as it pursues maritime delimitation talks with Japan.
  • President Marcos indicated the Philippines could get involved in any Taiwan conflict due to proximity, touching a red line for Beijing.
  • U.S. Secretary of State Marco Rubio plans to visit Manila, which is expected to anger Beijing and be closely watched.
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