FROM INSTITUTES to infrastructures, China continues to cement its place of power in the Philippines. China is the country’s leading trade partner, 1st in imports and 4th in exports, and financially supports President Rodrigo Duterte’s administration in projects such as the North-South Railway project, the Bonifacio Global City-Ninoy Aquino International Airport Segment of Metro Manila Bus Rapid Transit-EDSA project, and the Subic-Clark railway system.
However, China’s influence in the country manifests itself in other forms and extends beyond finances—such as the current pro-China stance of the current administration, the arrival of thousands of Chinese migrants, and the West Philippine Sea dispute.
A future without China has become unimaginable, but the current administration is urged by critics to be unwavering in upholding the country’s interests against its new trade partner, especially with the West Philippine Sea dispute. On the other hand, Chinese Studies lecturer Lucio Pitlo III says that China must ensure that their influence succeeds the current administration, and that their warm relationship with the Philippines provides the perfect opportunity to do to.
For instance, the migration of Chinese workers has created a path for better relations between the citizens of both countries. China’s foreign investment is further strengthened in the 100,000 Chinese migrants who have moved to the Philippines since 2016. After having been granted access to the Philippines by Duterte, a number of these workers moved to take part in the country’s gaming industry. These migrants have caused an influx in Philippine property sales in neighbourhoods favored by Chinese workers. Pitlo says that this “creates opportunities for the Chinese stigma to be broken,” referring to the possible working opportunities that will be forged between Filipinos and the Chinese.
The Philippines’ newfound partnership with China also leads the country into the middle of a trade war between the United States of America (US) and China, its two leading trade partners. Though seen as a crisis by many, Pitlo describes this as an opportunity for great gain for the country as it should cater to both sides, US and China, in this conflict. The tariffs induced by the trade war has pushed Chinese companies to move their manufacturing to Southeast Asia countries—this provides a financial opportunity for the Philippines.
China’s financial grip
In the past year, direct foreign investments and bilateral trade between China and the Philippines flourished with an increase of 57.14% and a total of $13.9 billion, respectively. As the country’s leading partner in trade, China has become the foremost dealer in the Philippine economy and is taking full advantage of its economic leverage. From aiding in Duterte’s campaign against drugs and terrorism by providing arms and rehabilitation centers to redeveloping Marawi City through private investments, Chinese financial aid has ranged from conflicts to permanent residences and infrastructure.
Pitlo labels these projects “projections of power due to economics.” He also says that the success of these projects could lead the next administration to deal with China, as projects such as the rehabilitation center of Marawi will take years to finish. Now dubbed the Filipino-Chinese Friendship Dome, Marawi’s Php 200 million multipurpose center was funded by Filipino-Chinese organizations. “It is a sign of [financial] power,” says Pitlo.
On the international front, the West Philippine Sea dispute has always been a point of controversy for Philippine-Chinese relations. Many are criticising Duterte’s deal of joint exploration with China which gives a 40-60 split (60% to Philippines and 40% to China) on all resources found, claiming that it would diminish the Philippines’ claim on the resource-rich sea. The West Philippine Sea, after all, provides the Philippines with marine resources, oil, and is the country’s only source of hydrocarbons. Even though the country won the rights to the West Philippine Sea, Pitlo says that “the ruling is different from the realities” in light of the Philippines being at a clear disadvantage against China.
However, Pitlo says that joint exploration is not a bad thing, as “the concept of sharing resources and putting the disputes aside is good.” He argues that it might be more beneficial for China to prove it can be a responsible power in the West Philippine Sea in order to build trust with its neighbours. He also explains that the sea acts as an irritant for China’s international relations efforts, portraying China as a bully rather than a responsible power. Pitlo says that the issue at hand is managing the disputes rather than solving them.
At the same time, however, Pitlo asserts that “the Philippines should be relentless in upholding its best interests in the West Philippine Sea,” to benefit the most from the situation. In other words, Pitlo argues that deals with China are the best option given the circumstances, and that it is up to the administration to make sure that the interest of the country is attained at the end of the day.
Winning hearts and minds
Despite these disputes, the relationship between China and the Philippines is closer than ever. With the administration’s pivot towards China, Duterte and Xi Jinping have forged a close relationship through numerous visits to China, and the constant collaboration between the two nations. In an article published by ABS-CBN, Cayetano describes this relationship between Duterte and Xi Jinping as one wherein “Duterte [is] able to criticize China.”
Compared to the previous administration, Duterte is prioritizing the creation of strong ties with China through friendly overtures despite the criticism he receives in the process. With regards to issues such as the South China Sea, Pitlo says that Duterte’s actions are “an extreme swing to the other side” in comparison to his predecessor, former President Benigno Aquino III, and that “[the resulting] political uncertainty has cost [the Philippines] greatly.” Pitlo says that these sharp swings are not beneficial to the Philippines because the country’s commitment to China after the Duterte administration is not guaranteed and this translates to compromising the trust of other foreign investors. He asserts that China is taking advantage of the Philippines’ pro-China president, but also wants to cement its power and make sure it succeeds the current administration.
“It is in the best interest for both countries, especially China, to build trust [with] each other,” says Pitlo. He is quick to emphasize that “engagement with China is a requirement” for the Philippines, referring to the fact that China is the country’s number one trade partner. Though there are many concerns to be had regarding a relationship with China, there are many opportunities as well. As of now, it is up to the current administration to uphold the best interests of the country in cases like the West Philippine Sea dispute and the US-China trade war. China, on the other hand, must prove itself to be a responsible power and a trustworthy partner in order to continue its rise on the global stage.
