Could joint oil and gas projects help ease Beijing and Manila’s South China Sea tensions?

China and the Philippines have been urged to resume joint South China Sea energy exploration as a way of easing tensions in the disputed waters.

A joint report by Chinese and Philippine analysts also said the two countries should work together in other “low-sensitivity” areas such as marine environmental protection and combating crime at sea.

The report, published on Monday by the Shanghai Institutes for International Studies think tank, said the relationship between the two countries was at a “rather sensitive and critical crossroads”.

“Joint oil and gas exploration in the South China Sea by China and the Philippines could serve as a feasible early-harvest project,” the report said.

It added: “This would not only alleviate or even solve the Philippines’ energy needs and reduce the escalation of tensions between the two sides due to unilateral actions, thus contributing to regional security and stability, but also help resolve the lack of trust and confidence between the two sides due to the asymmetry in their military and economic strength.”

The report also argued that Beijing and Manila should identify and pursue economic projects that served their shared interests and had low security implications as a way of building trust.