The South China Sea dispute between China and the Philippines is beginning to take its toll on the Philippine economy, which is heavily dependent on Chinese demand for its exports.
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The two countries have been locked in a tense standoff since April 10, when a Philippine naval ship attempted to arrest Chinese fishermen working off what is known internationally as the Scarborough Shoal. The Philippines claims the territory is within its exclusive economic zone, but China claims sovereignty over it, and Chinese ships blocked the arrest, ordering the Philippine ship to leave.
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