The conflict between China and the Philippines over control of the South China Sea is now reaching the Israeli government. The Philippines is demanding an official Israeli declaration recognizing its sovereignty over the maritime area, which has been in dispute for many years between the two Asian nations. While Israel is maintaining a neutral stance, this position is coming at a cost to its defense industry. Calcalist has learned that for several months, the Philippine Department of National Defense has suspended the signing of new contracts with Israeli defense companies, pending a formal declaration from Israel. Although Israel and the Philippines have developed strong ties over the past decade, including a series of defense deals worth billions of dollars, those ties are now under strain. Among the past deals: the purchase of Rafael’s SPYDER air defense systems, Elbit Systems’ ATMOS howitzers and UAVs, and nine advanced warships from Israel Shipyards worth approximately $200 million. In 2020, when then-controversial President Rodrigo Duterte bought a new executive jet, the order was supplied by Israel Aerospace Industries with a $40 million Gulfstream G280. Duterte, who visited Israel in 2018 and met Prime Minister Benjamin Netanyahu and then-President Reuven Rivlin, famously praised Israeli arms manufacturers for not imposing use restrictions, as some Western arms suppliers do.

Full report : Israeli defense firms face stalled deals as the Philippines pushes for political backing in its maritime dispute with China.