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Saturday, June 2, 2012

Conflict of interests and investments


Most conflicts are economically-driven. As controversies on Scarborough shoal heightened, we need to understand the diverse dynamism within Phil-Chinese relations. 

In earlier centuries, Philippines welcomed Chinese merchants for barter and trading. Their business was focused on paper-based products, livestock, pharmaceutical and plastic toys. Chinese merchants later started pouring investments for manufacturing industry (Dela Cruz, 2008). The latter include textiles. Many of them are into infrastructure and real estate investments as they have evidently constructed hotels, malls, restaurants, and the like.

Over the years, China ranked as among the top leading traders of our country with an investment of less than US$ 1. 5 B (Del Rosario, 2012). They expanded agricultural interest over 1.2 million hectares of agricultural areas, part of which is aimed at producing rice, sorghum, corn and ethanol (Dela Cruz, 2008). Some of these are done in Palawan areas.

In return, China accommodated an estimated 200,000 overseas Filipino skilled workers. These are either teachers, IT experts (working on US-owned companies operating in mainland China) and in the hospitality industry (working in hotels, restaurants etc.).  They import our bananas and other agri-products. For leisure and enjoyment, they also open its gates as tourist destination for neighboring countries. Del Rosario (2012) accounted that Philippine investment in China is greater (than China's investment in our country) at nearly US $ 3 B. 

As our government open the mineral exploration and production to foreign investments, the Chinese business sector also leaped to engage in mining for chromite, gold, and silver in Mindanao. The mining operations are not without controversies as these are met with local oppositions due to its encroachment in indigenous people's ancestral domain; potential vast ecological destruction; human rights and security-related concerns; and, policy-related violations. 

Recently, China offered Philippine government substantial amount as loan to cover for the improvement of infrastructure facilities e.g. Angat Dam, railway system, airport, roads, & ports (Dela Cruz, 2008). We're never certain what went on with these projects.  Whilst we struggle against the sale of Agus and Pulangi hydropower complexes, China positioned itself to benefit from our power industry by investing on our main transmission assets. 

As this bilateral relations progress, we now confront China's controversial claim over Scarborough shoal---geographically located within our territorial and maritime area. This isn't just about fishes, certainly. However, while the controversy is brought to international court for resolve, stakeholders of this country should continually learn more for us to ascertain China's strategic direction under this bilateral relation. Indeed, the issue isn't only challenging territorial and security concerns. It’s also challenging our executive and legislatures about how foreign policy and regulations are enforced.

Amid these developments, China's political norm needs to be noted too. Bhaskar (2012) pointed that China's officials are divided in their stance pertaining to foreign relations and diplomatic strategies.  Those who belong to the "internationalists" prefer compliance with international norms and of optimizing system for global governance (Bhaskar, 2012). They weigh more significance on social cohesion and interrelation above sovereign power. The other group, "realists", likes the utilization of military power to illustrate their dominance in the international scene. This view dominated in the current claim over areas marked under disputes. This simply affirm that their constituents' worldviews are polarized and ergo, we deal with the two.  Bhaskar (2012) contended that the scaling interest of China to control resources in foreign countries becomes necessary to meet China's internal supply-and-demand.  Or, simply put, their needs. This is true noting China's over reliance on oil and ore imports (Bhaskar, 2012). On the other hand, it’s also likely that they wanted to control resource and maintain profit free from the regulations of other sovereign states. 

Other political analysts argue that the controversy in Scarborough shoal is merely used as a political tactic to cover internal rifts and problems within the mainland. Whether this is true or not, it’s still unwise to preach lies to their constituents to justify and confuse them on issues pertaining territorial claims. On the other hand, Philippines opts for peaceful and diplomatic resolve on internal and external rifts although we maintain vigilance on the security aspect because our envoys are dealing with Chinese military officials who hold much authority on their strategic foreign policy (Bhaskar, 2012).

While we hope for friendly ties, we bend our knees to pray and light candles to keep the peace. We note that our relations with our Chinese communities within the Philippines remain warm and in good grace.



References:

Bhaskar, R. (2012). China's Foreign Policy Debate-Analysis. Eurasia Review (News and Analysis). http://www.eurasiareview.com/18052012-chinas-foreign-policy-debate-analysis/ Accessed: May 19, 2012.

Dela Cruz, A. (2008). Chinese Investments in the Philippines. China Business, Mla., Philippines.

Del Rosario, A. (2012). Remarks of Foreign Affairs Secretary Albert F. Del Rosario on Philippine Foreign Affairs at the Joint Membership Meeting of the Makati Business Club and the Management Association of the Philippines, Makati, Philippines.