This is

CBSI on the world. I'm John Bachelor. The Philippines, Financial Times reporting.

Philippines withdraws from disputed reef in South China Sea,

Subhead, moved to test Beijing's willingness to de-escalate tensions with Manila.

This requires very careful interpretation and

Gordon Chang at Gordon G Chang is here as my colleague and co-host and we're very

pleased to be joined by our colleague, James Finel,

Captain United States Navy retired intelligence officer,

most importantly, the author with his colleague, Bradleyayer of the new book, Embracing Communist

China, America's Greatest Strategic Failure.

Jem, a very good day to you.

The Coast Guard vessel from the Philippines is now withdrawn from its

posting after abuse by the Chinese so-called Coast Guard for many weeks.

The expectation according to the Financial Times, is that the

Philippines will return a Coast Guard vessel to this same area of the ocean,

South China Sea Sea soon enough.

What is the significance of the withdrawal?

Does this mean defeat for the Philippines?

Does this mean they've changed their direction?

Good day to you, Jim.

Good day, John and Gordon.

Well, that's how Beijing is portraying it in their press today.

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