ON JUNE 9, 1975 the Philippines and the People’s Republic of China first established diplomatic ties. This was a result of then-president Ferdinand Marcos’ pivot away from an American-centered foreign policy by reaching out to other neighbors in the region. Over the years, this bilateral partnership has ebbed and flowed, but recent disputes in the West Philippine Sea have threatened to undermine ties.
In response to this, the current administration of President Rodrigo Duterte has made great overtures at improving relations with China. Such efforts include dialogue with Chinese President Xi Jinping, eschewing territorial sovereignty for a slew of new economic deals. Duterte’s foreign policy comes at the cost of damaging the country’s relationship with the United States, its erstwhile colonizer and current ally.
This abrupt change in foreign policy has caused significant shifts in Chinese interactions in the country. Tourism has risen drastically since the start of the Duterte administration in 2016 with Chinese tourist arrivals in the Philippines rising from 340,958 in the first half of 2016 to 454,962 in the first half of 2017.
Closer relations incentivize citizens from both countries to take advantage of economic and social opportunities, including development in new infrastructure and tourism cooperation. According to Trade Secretary Ramon Lopez, China is predicted to become the largest trading partner of the Philippines in 2017 as a result of its detenté with China.
In January 2017, trade with China amounted to USD 2.05 billion and inflows of USD 1.7 B from Chinese investors, which went mostly to agricultural products. In return for these deals, China hopes for the Philippines to implement more liberal trade policies, improving trade conditions for China.
Local markets are also looking to expand under this partnership. Earlier this year, 670 small and medium Filipino and Chinese enterprises gathered in Manila for the China-Philippine Cross Border Trade and Investment Conference. The objective of this conference was to link Filipino and Chinese SMEs together. Once matched, the Bank of China (BOC) promises financial backing to promote and expand their businesses. These businesses lie in the food processing, agriculture, construction, real estate, and tourism sectors.
“Our partnership with the Philippines aims to open opportunities for local businesses and bridge markets across the globe. By promoting trade, we hope to accelerate growth for both our countries,” says Deng Jun, head of the BOC in the Philippines.
Despite the criticism and uncertainty that surrounds present Chinese-Filipino relations, life goes on for citizens of both countries. The two countries have shared a long history together and will continue to do so, for better or for worse.
