President Rodrigo Duterte has decided to maintain the Visiting Forces Agreement (VFA) “in connection with political and other developments in the region,” Philippine Foreign Affairs Secretary Teodoro Locsin Jr. said in a social media post Tuesday.
The agreement, signed in 1988, gave US military planes and ships free entry to the Philippines and relaxed visa restrictions for US military personnel.
The Philippine government gave 180 days notice to the US to end the agreement in February, indicating that Manila needs to rely on its own resources for its defense. On Tuesday, the US welcomed a change of heart.
“Our old alliance has benefited the two countries, and we hope to continue close security and defense cooperation with the Philippines,” said a statement from the US Embassy in Manila.
The Philippines was once home to two of America’s largest military bases outside the US: Clark Air Base and Subic Bay Naval Station.
Although it no longer became a US base in the early 1990s, US forces still have access to them under the VFA and Manila maintains strong military relations with Washington.
But over the past few years, Duterte has tilted his historical ties with the US and towards China, which has offered closer economic ties with Manila.
“I need China. More than anyone at this time, I need China,” Duterte said before flying to China in April 2018.
Compared with his predecessors, Duterte saw the ongoing Philippine disputes in the South China Sea as being more negotiable.
Both the Philippines and China are among several countries with overlapping sea claims, or parts of it. China claims almost all 1.3 million miles of the South China Sea as its own even though other complainants have borders that are much closer to disputed waters.
Last year, Duterte said he had been offered a controlling stake in a joint energy deal by Chinese President Xi Jinping in return for ignoring international arbitration in favor of Manila in the South China Sea.
In 2016, a court in The Hague ruled in favor of the Philippines in a maritime dispute, concluding that China has no legal basis to claim historic rights over much of the South China Sea.
China, however, has increased its military presence on islands also claimed by Manila.
In the past two months, the People’s Liberation Army has moved an advanced anti-submarine war and reconnaissance aircraft to Fiery Cross Reef, known as Kagitingan in the Philippines, in the Spratly Islands chain.
Beijing also made Fiery Cross a part of the southern Hainan province, creating two new administrative districts including the South China Sea headquartered in the Paracel Islands, another island group with disputed claims.
In addition, China has maintained the presence of maritime militia ships around Thitu Island, the largest Philippine occupation island in the Spratly islands, for more than a year, according to the Asia Maritime Transparency Initiative.
An average of 18 Chinese ships have traveled the island every day, according to an AMTI satellite analysis published in March, hampering Philippine efforts to build infrastructure there.
On Wednesday, Locsin indicated that the Philippines saw the US playing a role in the region for some time to come.
“We look forward to continuing our strong military partnership with the United States, even as we continue to reach out to our regional allies in building shared defense towards sustainable stability, peace and continued economic progress and prosperity in our part of the world,” he said.
Sophie Jeong from CNN contributed to this report.