With Manila’s shift in foreign policy further toward Beijing, more foreign direct investments (FDI) are expected by Philippine businesses from China, which poured less investments to the Philippines in the Aquino administration compared to its fellow developing countries in Asia.
According to the Philippine Chamber of Commerce and Industry (PCCI), China has always been seeking to increase investments in the Asean, which Beijing considers as a major regional trading partner, as long as there are fresh opportunities.
“With regard to China, they’re investing in Asean, and they’re always looking for opportunities. Having seen the improvements in the Philippines, that will encourage them to invest more,” PCCI President George T. Barcelon told the BusinessMirror.
Barcelon said among the improvements that the Chinese government and businesses see in the Philippines in the first few weeks of the Duterte administration is the good peace-and-order situation, brought about by President Duterte’s encouragement to the police to enforce laws more strictly, particularly against illegal drugs and criminality.
According to China’s Ministry of Commerce, the biggest recipient of Chinese FDIs in Asean in 2013 is Singapore, with $14.75 billion; while the Philippines is second to the lowest, with only $692 million in FDIs for the said year.
FDIs from China to the other middle-income Asean members were all higher than what went to the Philippines, with Indonesia getting $4.66 billion in FDIs; Thailand, with $2.47 billion; and Malaysia, with $1.67 billion. FDIs from China to low-income Asean countries in 2013 were actually higher than what the Philippines got, with Burma getting $3.57 billion; Cambodia, $2.85 billion; Laos, $2.77 billion; and Vietnam, $2.17 billion.
China trip
Despite the ongoing territorial dispute with China over the West Philippine Sea, Mr. Duterte is still keen on getting more investments from China, particularly in infrastructure, such as a railway network in Mindanao.
In a speech earlier this week, President Duterte said he can go to China and Russia, which are “waiting” for him to come, for investments if the Americans and the Europeans would pull out their investments to the Philippines due to their aversion to the alleged human-rights violations and the lack of the rule of law in his war against illegal drugs.
“The issue here is not my mouth, and I would say to those ratings about business economy that: So be it, if they will leave. Then we will start on our own. I can go to China, I can go to Russia. I can have a talk with them, they are waiting for me, so what the hell,” Mr. Duterte said in a speech on Thursday.
Malacañang officials confirmed that there is a plan for President Duterte to visit China soon, although a trip to Japan after next week’s trip to Vietnam is more likely to happen before he goes to China.
Barcelon said the PCCI would like to accompany Mr. Duterte in his trip to China, which is expected to bring in more Chinese investments and tourists back to the Philippines, although there is yet an official invitation for them to do so, and the schedules have yet to be firmed up.