Abstract
This study, anchored on the theory of realism by Hans Morgenthau (1948), examined the Spratly's conflict and discussed its implications to the Peoples' Republic of China and the Republic of the Philippines. Budgetary allocations of both states for Spratly's were reviewed. China's interest on the Spratly's is manifested by its strong hold of military forces and recorded incursions in the area. Data suggest that China has been strengthening its military capabilities from 2001 to the present. Meanwhile, the conflict over Spratly's pushed the Philippines to upgrade its military capabilities. China and the Philippines confirm their claims over the Spratly's Islands notwithstanding a commitment in the UNCLOS (United Nations Convention on the Laws of the Seas). Evidently, the Spratly's conflict has brought pressure to China and the Philippines in boosting their military presence in the area. Empirically gathered evidences point out expanding military budget in both countries as they advance their claims over Spratly's. Indicatively, the conflict will continue as long as both states hold on to their respective claims. In this respect, China and the Philippines should endeavour to resolve the Spratly's conflict through diplomatic ties. At the same time, work for cooperation by enactment of mutually beneficial bilateral agreements.
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