"Both the Philippines and China agree that the maritime territorial dispute does not represent the totality of bilateral relations, this UP professor points out."
"Both the Philippines and China agree that the maritime territorial dispute does not represent the totality of bilateral relations, this UP professor points out."
Our Saturday Forum@Annabel’s last June 15 focused on the more than four decades of Philippines-China relations. We established formal diplomatic ties with the People’s Republic of China on June 9, 1975. This came less than three years after the declaration of martial law in the entire country by President Marcos on Sept. 21, 1972.
One of the reasons cited by Marcos for the imposition of authoritarian rule was precisely to stem the tide of armed rebellion in the countryside by the communist-led New People’s Army. One immediate result of the establishment of diplomatic ties with Beijing, as far as I can gather, was that the Chinese Communist Party stopped sending high-powered firearms to the NPA. This was a significant development since on two separate occasions in 1972 and 1974, the NPA tried to bring in firearms from China via rickety ships. The first was discovered early enough by the military and only about 2,000 rifles were off-loaded from the m/v Karagatan off Isabela province; the second maritime vessel that came from China foundered in rough seas off the western side of northern Luzon and had to be abandoned with its cache of firearms going down to the bottom of the ocean rather than to NPA rebels in the restive countryside.
But I digress.
University of the Philippines Professor Bobby Tuazon pointed out that the establishment of bilateral ties with China in 1975 with the signing of a joint communiqué by Chinese Premier Chou en-lai and President Marcos in 1975 with its promise of heightened friendship and cooperation has since then made significant progress.
Tuazon reiterated what Philippine Ambassador to China Chito Sta. Romana had earlier said, that current bilateral ties have in fact now reached the stage of Strategic Comprehensive Partnership. This partnership now encompasses trade and commerce; official development assistance in the form of grants, loans and technical assistance; security; cultural exchanges and people-to-people contacts.
Apart from all these, Tuazon said, the two countries are now directly addressing contentious issues involving territorial claims in the South China Sea/West Philippine Sea through the establishment of the Bilateral Consultative Mechanism or BCM. Through this mechanism, such issues as Filipino fishermen’s access to their traditional fishing grounds in the West Philippine are discussed and problems are threshed out. So far, there have been four BCMs, the last one was held in April and the fifth one to be held in the second half of this year.
Both the Philippines and China agree that the maritime territorial dispute does not represent the totality of bilateral relations, Tuazon pointed out. Apart from the BCM, there are multilateral mechanisms that both countries now use to settle differences. For instance, the China-ASEAN mechanism is now finalizing a proposed Code of Conduct in the South China Sea which would help in settling disputes over territory as well as maritime and fisheries resources.
Prominent Tsinoy businessman George Siy emphasized that the Philippines has benefited significantly from the establishment of diplomatic relations with China in1975. Our next-door neighbor is financing some of our infrastructure projects, such as dams and bridges. These projects, he emphasized, were selected by the Philippine government for funding by China based on what Filipinos actually need. Amid fears that the dam projects outcry that would draw the country into a “debt trap,” Siy said we have to make up our minds because we really need more water supply for a growing population.
At present, the businessman said, some of the benefits from two-way trade are “invisible.” For instance, we can buy television sets made in China at far less cost or just one-third than those from the US, Japan and Korea, thus allowing Filipino consumers to have more disposable income to buy other goods they need.
As we get drawn more and more into the digital age, Siy said, our economy becomes more inclusive. Today, with China-made smartphones becoming more affordable, around 15 million Filipinos can now tap into the smart economy. At present, Filipinos spend an average of six hours a day browsing Facebook posts and entertainment news. But more people are now using the Internet and smartphones to conduct business.
Then there’s the tourism boom. For Siy, the country benefits from it as Chinese tourists here spend an average of $1,000 during their stay, thus allowing the Philippines to earn about P70 billion a year from the tourism boom. This year we can expect about two-million tourists from China as compared to just 1.2 million last year.
There’s a spillover effect from our enhanced economic cooperation with China as Japan, Korea and European countries also want to invest here, Siy told media.
With regard to Chinese workers in the country, Siy said it’s not true that they are taking away jobs from Filipinos, as many of them are highly skilled and hold supervisory or managerial positions. He said the Immigration Bureau has issued work permits for some 120,000 Chinese nationals. The Chinese here spend P70 billion a year on food and between P40 billion to P59 billion in rentals, thus benefiting the property development sector here.
Beyond all this, Chinese investments have also moved to the countryside despite the risks. The Chinese have built schoolhouses in Jolo and Sulu, according to Siy, and put up drug treatment and rehabilitation facilities in various parts of the country.
Siy emphasized that loans from China are not expensive compared to those extended by other countries. While Japan’s .05 percent interest rate is lower than the 2 percent interest charged by China, that’s because it’s pegged to the yen. But if you peg it to the US dollar, Japanese loans carry an effective interest rate of 2.7 percent. The World Bank is even worse as it charges a 4 to 6-percent interest rate. If you borrow from domestic banks, you will not get less than 6 to 7-percent interest rate. Japanese projects are five to 10 times more expensive than those of the Chinese, Siy stressed.
