Cooperation with China boosts Philippines' strategic initiatives

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Schoolchildren wave the national flags of the Philippines and China along the route of Chinese President Xi Jinping's convoy at the Malacanang palace grounds in Manila on Tuesday. Photo: AFP

Chinese President Xi Jinping's state visit to the Philippines from Tuesday to Wednesday has caught international attention.

China-Philippines relations have been one of the most vacillating connections among China and its neighboring countries. During the rule of Benigno Aquino III, bilateral relations were at a low ebb due to frictions over the South China Sea. Incumbent President Rodrigo Duterte changed the Philippines' diplomatic course and brought ties with China back to the right track.

Last year, China surpassed Japan and became the largest trading partner of the Philippines. The two are conducting negotiations over the possible joint exploration of oil and gas in the disputed waters. If they reach an agreement, it could serve as an exemplary model for South China Sea claimant countries.

However, not everybody is happy to see Beijing and Manila set aside disputes and develop friendly ties. Besides obstruction from pro-US factions within the Philippines, some US and Western forces do not want to see rapprochement between China and the Philippines and even pressure the Duterte government to cut relations.

Recently, some Western media claimed that most of the assistance and investment that China promised to the Philippines was never fulfilled. Such tone maliciously aims to drive a wedge between Beijing and Manila.

In recent years, China has been advancing its Belt and Road initiative in Southeast Asia and has no reason to skip the Philippines when seeking investment and cooperation. In fact, relevant departments of the two countries have been working to push forward the implementation of cooperation projects.

The West has been accusing China's Belt and Road initiative of locking some countries into a debt trap. However, when it comes to the Philippines, the West criticized China for not fulfilling its promises. Behind such hypocritical words lie the West's deep-seated prejudice and hostility against China.

When the US strategically targets China, it is difficult for the Philippines - geographically adjacent to China while closely watched by the US - to keep independent strategic thinking and remain firm-minded.

But independent thinking and strong political determination are essential for every country. When Duterte first thought about mending ties with Beijing, independent thinking prompted Manila to face the question: What advantages can the country gain from enmity with China, if any? Will the Philippines benefit from it or will it be exploited by external forces?

The whole region should keep alert to whom will benefit from confrontation among South China Sea stakeholders. As one of the US' allies in Southeast Asia, the Philippines will always be a tool of the West to instigate provocations in the waters. After twists and turns, Philippine society will form its own judgment.

Many Philippine elite might have thought that their country and the entirety of Southeast Asia could rely only on the US and the West before China's rise, yet most regional countries did not achieve modernization. China offers more options for the Philippines, and because of China's rise, the Philippines and Southeast Asia have gained more attention. Compared with the Aquino era, the Philippines under Duterte has acquired more strategic initiatives without becoming overly dependent on other countries.

China-Philippines friendly cooperation has changed the strategic position of the Philippines and brought about a new pattern for its development. It is expected that Xi's visit will accelerate bilateral cooperation.

Newspaper headline: Xi, Duterte upgrade ties, Xi’s Philippine visit a ‘milestone’ event, Improved relations help keep stability in S.China Sea: expert

https://youtu.be/Nu0q5wraLGQ

As cooperation and political trust improve, China and the Philippines agreed on Tuesday to lift ties to a comprehensive strategic cooperation relations while stressing the need to manage disputes in the South China Sea through "friendly negotiations."

The decision was announced after visiting Chinese President Xi Jinping's meeting with Philippine President Rodrigo Duterte on Tuesday in Manila, the Xinhua News Agency reported.

Chinese experts stressed that the visit is a milestone event in the development of bilateral relations and the two countries will pursue greater cooperation under the framework of the China-proposed Belt and Road initiative (BRI) in the coming years.

As friendly neighbors across the sea, China and the Philippines enjoy geographic proximity and a strong bond that links the two peoples and cultures, Xi said, Xinhua reported on Tuesday.

Since Duterte took office, China and the Philippines have reopened the door of friendship and cooperation to each other, bringing real benefits to the two peoples and making important contributions to regional peace, stability and prosperity, Xi noted.

Xi's visit will largely promote bilateral relations as the visit shows that China values friendly relations with the Philippines, Gu Xiaosong, a research fellow on Southeast Asian studies at the Guangxi Academy of Social Sciences, told the Global Times on Tuesday.

"It is a milestone event in the development of bilateral relations," Gu remarked.

Glenn Penaranda, commercial counselor of the Philippine Embassy in China, told the Global Times on Tuesday that "Xi's visit is vital in highlighting the significant relationship between our two countries, particularly in trade and investments. The visit will encourage more and deeper engagements."

Improved China-Philippines relations will also play an important role in maintaining the stability of the South China Sea, experts noted.

"If China and the Philippines can reach an agreement on the exploration and development of oil and gas resources in the South China Sea, it will be a breakthrough in economic cooperation in the region and will largely promote the safety of the Asia-Pacific," Gu said.

Growth prospects

The prospects for economic and trade relations between the two countries are very bright as Philippine priorities are aligned with the key directions for industrial capacity cooperation under BRI, in sectors such as infrastructure, construction and building materials, chemicals and manufacturing, Penaranda said.

Gu agrees, saying that bilateral economic and trade ties will be further enhanced to a higher level, and the two countries will pursue more cooperation under the BRI.

As a developing country with more than 100 million people, the Philippines needs to improve its infrastructure and enhance the growth of its industrial enterprises, Gu noted.

"We need to better understand the opportunities for bilateral cooperation through increased engagements by enterprises," Penaranda said, noting that it is important that the frequent reciprocal visits of officials and business delegations continue.

Experts said China is committed to advancing the development with other countries and the Belt and Road initiative will bring greater growth to other developing countries and promote the economic integration of the Asia-Pacific region.

The two countries have conducted broad cooperation in transportation infrastructure and industrial parks and energy, and China is the Philippines' largest trading partner.

Trade between China and the Philippines increased 8.5 percent year-on-year to $51.28 billion, according to information released by China's Ministry of Commerce (MOFCOM) on Thursday.

As of the end of September, China's investment in the Philippines was $1.25 billion and the Philippines' investment in the Chinese market reached $3.33 billion, according to the MOFCOM.

Experts said cultural and educational exchanges between the two countries also see a huge potential.

The hospitality toward Chinese people is easily felt among the Philippine public.

The Chinese and Philippine flags were placed along Roxas Boulevard in Manila a week ago. Many Chinese who live and study in Manila waited along the boulevard on Tuesday to welcome Xi.

"We're so excited that President Xi has come to Manila. We hope the two countries could strengthen cultural exchanges in the future," Kui Jiangong, a PhD candidate from China who studies at Adamson University in Manila, told the Global Times on Tuesday.

"I have met many locals who like to discuss Chinese culture with me as they want to know more about China," he said. - Global Times

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They are the most amazing economic ants on Earth, ‘Sugar King’ writes in memoir

 Good Chinese business management is second to none; the very best of Chinese management is without compare. I haven’t seen others come near to it in my 70year career. Robert Kuok

The overseas Chinese were the unsung heroes of the region, having helped to build South East Asia to what it is today, said Malaysian tycoon Robert Kuok (pic).

He said that it was the Chinese immigrants who tackled difficult task such as planting and tapping rubber, opening up tin mines, and ran small retail shops which eventually created a new economy around them.

"It was the Chinese who helped build up Southeast Asia. The Indians also played a big role, but the Chinese were the dominant force in helping to build the economy.

"They came very hungry and eager as immigrants, often barefooted and wearing only singlets and trousers. They would do any work available, as an honest income meant they could have food and shelter.

"I will concede that if they are totally penniless, they will do almost anything to get their first seed capital. But once they have some capital, they try very hard to rise above their past and advance their reputations as totally moral, ethical businessmen," Kuok said based on excerpts of his memoir reported in the South China Morning Post .

“Robert Kuok, A Memoir’ is set to be released in Malaysia on Dec 1.

Kuok said the Chinese immigrants were willing to work harder than anyone else and were willing to "eat bitterness", hence, were the most amazing economic ants on earth.

In the extracted memoir published by the South China Morning Post, Kuok, pointed out that if there were any businesses to be done on earth, one can be sure that a Chinese will be there.

"They will know whom to see, what to order, how best to save, how to make money. They don’t need expensive equipment or the trappings of office; they just deliver.

"I can tell you that Chinese businessmen compare notes every waking moment of their lives. There are no true weekends or holidays for them. That’s how they work. Every moment, they are listening, and they have skilfully developed in their own minds – each and every one of them – mental sieves to filter out rubbish and let through valuable information.

"Good Chinese business management is second to none; the very best of Chinese management is without compare. I haven’t seen others come near to it in my 70-year career," he said.

"They flourish without the national, political and financial sponsorship or backing of their host countries. In Southeast Asia, the Chinese are often maltreated and looked down upon. Whether you go to Malaysia, Sumatra or Java, the locals call you Cina – pronounced Chee-na – in a derogatory way," he said.

He added that the Chinese had no "fairy godmothers" financial backers.

"Yet, despite facing these odds, the overseas Chinese, through hard work, endeavour and business shrewdness, are able to produce profits of a type that no other ethnic group operating in the same environment could produce," he said.

Kuok ultimately attributed the Chinese survivability in Southeast Asia to its cultural strength.

"They knew what was right and what was wrong. Even the most uneducated Chinese, through family education, upbringing and social environment, understands the ingredients and consequences of behaviour such as refinement, humility, understatement, coarseness, bragging and arrogance," he said.


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Xiamen University shaping up to be the largest foreign university campus in Malaysia

 Xiamen University Malaysia Campus

Video: First ever Chinese overseas campus opens in Kuala Lumpur
CCTV News - CCTV.com English http://english.cctv.com/2016/09/23/VIDEQAcbMXh1wwYcpf2mzJGF160923.shtml#.V-S9c6xl6C4.twitter

In Malaysian capital Kuala Lumpur, students have this week been enrolling at the first Chinese university to open a campus overseas.

Officials feel it is more than just an educational ventune, it is also a way to advance good relations between China and its southeast Asian neighbors, as well as promoting the inclusive Belt & Road initiative.

A specially chartered Xiamen Airlines plane brought this special, first group of students to Kuala Lumpur. In all, 440 students from 14 Chinese provinces will be arriving this week to take their places at the emerging new campus of Xiamen University in Malaysia. They all scored top marks in China’s university entry exams and chose to be part of this pioneering educational venture.

“In terms of the quality, in terms of the size of the batch of students, and in terms of the procedures, this is unprecedented in terms of Malaysia’s tertiary education history. So it’s really a big day for us too,” said Professor Wang Ruifang President, Xiamen University Malaysia.

A specially chartered Xiamen Airlines plane brought this special, first batch of students to Kuala Lumpur.

It’s also a big day for the students.

“First is excited, because it’s an opportunity for me to develop, and it’s an opportunity for me to enjoy the cultural diversity,” said Zhu Wen, student, Xiamen University Malaysia.

The Chinese students will join students from Malaysia and later around South East Asia. Numbers will eventually swell to 10,000 at what is shaping up to be the largest foreign university campus in Malaysia. All courses will be taught in English, except for Chinese studies and Traditional Chinese Medicine.

At a recent meeting with Southeast Asian leaders, Chinese premier Li Keqiang said China wants to strengthen its relationship with ASEAN in a number of key areas, including people to people ties, and in particular, education.

The university says it hopes to advance that aim as well as China’s One Belt, One Road initiative, something the Chinese students are well aware of.

“The Malaysia campus is based on China’s Belt and Road initiative so I think to come to the Malaysia campus is to put our hands on the ark of history and combine historical process and our personal development together,” said Wu Hanyang, student.

A lofty goal, perhaps, but in keeping with what this campus is really about: Meeting the highest academic standards while helping China and ASEAN deepen their social, cultural, strategic and economic cooperation.

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A new China in the making at Xiamen International Fair for Investment and Trade (CIFIT)

Brisk business: A popular “food cultural village” that sells typical Xiamen food near Xiamen University.

It was a case of chin up, chest out at the recently concluded CIFIT in Xiamen, with the doors swung wide open to foreign sophisticated industries and its private industries poised to venture out.

China’s economic growth may be slowing down after three decades of high growth, but the 19th China International Fair for Investment and Trade (CIFIT) held at Xiamen from Sept 8 to 11 showcased a “new China” that is confidently restructuring its economy in response to global challenges.

CIFIT 2016 themed “New Concept, New Development: Towards a new world of open economy” clearly signified China’s readiness to embrace reforms, after it has sailed through the exciting period of opening up in the 1980s-1990s, and the 2008 crisis that hit its industries badly.

A new China will discard China-made cheap and low-quality industrial products, and counterfeits – rampant at the beginning of the opening-up and even to this day, but will want to see quality enterprises that can compete internationally with high-end goods and services, such as those provided by Huawei, Lenovo and Haier.

The financial crisis of 2008 and China’s disappearing demographic advantage, as well as external trade friction, have forced industries and the economy to go for structural changes. Slower economic growth backed by quality investments is to be the new norm.

New ventures: Ong (second from left) opening the ACCCIM Pavilion at Xiamen trade and investment fair CIFIT. Joining him on his left are Fujuan province Vice Governor Zhang Zhinan and ACCCIM president Ter. On his right is Xiamen Municipal financial affair director Han Jing Yi.

In fact, emerging industries that focus on quality and technology have gradually replaced traditional industries and become a driving force in economic development. Mobile phones, computers, household electrical appliances, machinery and equipment, property development and rail technology, among others, have gone global.

And the ‘One Belt, One Road’ economic initiative expounded by President Xi Jinping three years ago is offering unprecedented opportunities to companies within the mainland to go global and have a say in the world.

While structural changes are taking place at local enterprises, China is opening up further to usher in more high-tech and high-value foreign brands to stimulate its economic development to a higher plane. This could be discerned from its Government’s policy.

At the main CIFIT forum in Xiamen on Sept 8, vice-premier Wang Yang announced in his opening speech: “From Oct 1, we will grant equal and fair treatment to all local and foreign companies incorporated in China. Our Chinese companies will have to compete with foreign-owned companies on level playing fields in China.”

This is the “new China” exhibited at the four-day CIFIT, touted to be the largest investment fair in the world, where its products and services were displayed alongside leading products from over 50 countries at 6,000 booths.

CIFIT 2016 was organised by the central government almost immediately after China successfully hosted the G20 Summit from Sept 3 to 5 in picturesque Hangzhou, Zhejiang province, with grandeur.

The world’s second-largest economy had been hailed by world leaders for its determination to boldly tackle a number of global issues, including the economy, environment, corruption and poverty.

In fact, China has the basis to be confident.

Despite weak international conditions, flow of foreign direct investment (FDI) into the country – albeit slower – still ranks the highest in the world so far this year, according to Wang Yang.

According to Dr Huang Chenhong, president of Dell Greater China, Dell’s headquarters in the US has committed to investing an additional US$125bil (RM517bil) in China and has pledged to contribute US$175bil (RM724bil) worth of total trade as well as bring in venture capitalists.

Going global: The short but colourful opening ceremony of CIFIT by Wang Yang on Sept 8 at China’s beautiful coastal town of Xiamen.

Huang told a CEO Summit on Sept 7 ahead of CIFIT: “All this shows that Dell continues to view China’s market positively, and will deepen our root here.”

Malaysia’s Second International Trade and Industry Minister Datuk Seri Ong Ka Chuan, who was a guest of honour at CIFIT’s official opening ceremony, made this observation to Sunday Star in Xiamen:

“China has evolved. It is a much, much more confident nation now. It is ready to welcome foreign sophisticated industries to promote economic development to a higher plane, and at the same time its private industries are now prepared to venture out.”

Several years ago, only state-owned enterprises and financially-strong conglomerates were ready to expand overseas, he observed.

Citing the example of Kibing Group – China’s largest and highly automated float-glass manufacturer, Ong said this privately-owned listed company is now riding on the wave of the Belt and Road Initiative to expand its manufacturing in Malaysia, research and development in Taiwan and marketing arm in Singapore.

He also noted that while China has not signed free trade agreements with many countries, trade barriers would have to be broken down once China builds rail and other communication systems in all the 65 countries along the Belt-Road route to improve connectivity.

“While it takes 40 to 45 days to ship goods from Spain to China, it only takes a train journey of 16 days for freight from Madrid to be transported to the wholesale market in Yiwu.

“This is the power of the 21st Century Silk Road rail service under the Belt and Road Initiative,” he said.

On Dec 10, 2014, China and Spain was linked by the longest rail link in the world after a train from Yiwu in coastal China completed its maiden journey of 13,053km to Madrid. En route it passed through Kazakhstan, Russia, Belarus, Poland, Germany and France before arriving at the Abroñigal freight terminal in Madrid.

Brisk business: A popular “food cultural village” that sells typical Xiamen food near Xiamen University.

Together, the Belt and Road Initiative route covers 65 countries populated by 4.4 billion people. It has been projected that infrastructure development alone will bring in investment of US$160bil (about RM662bil) and China’s annual trade volume with Belt-Road countries will exceed US$2.5 trillion (RM10.3 trillion) in a decade or so.

The Belt-Road strategy could have as much impact on China’s internal economy as it will have internationally. One of China’s top priorities is to export industries with major overcapacity such as steel, cement and aluminium.

Datuk Ter Leong Yap, president of Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM), told Sunday Star in Xiamen: “From the three CIFITs we have participated in, we can sense that China is not only ushering in high-tech, high-value foreign investments now, but it is also encouraging its companies to go global vigorously.”

“As it has economies of scale, it is prepared to buy foreign technology and R&D (research and development) to expedite its current economic transformation.”

He noted China has gone far ahead in the development of Internet services such as e-commerce, e-trade and e-logistics; and its home-grown IT giants led by Alibaba Group and Tencent are leading the IT revolution in the world.

China is seen as building infrastructure in the Belt-Road countries now. Following this, or concurrently, is the influx of investments from its reputable high-tech and high-value industries, observed Ter.

According to Wei Jianguo, vice-chairman of China Centre for International Economic Exchanges, emerging industries that are classifed as “new China-made” are IT industry represented by Huawei, machine building sector represented by XCMG and Sany Heavy Industry, space flight and aviation, as well as bullet train and high-speed rail industries. These industries boast high technology, patents, independent innovation and top talents in the world.

“The new China-made goods not only enter into Asian and African markets, but more importantly also enter into high-end European and American markets,” Wei said in an interview with Economy and Nation Weekly.

While in many sectors China has gained global recognition, Wei noted the country is still falling behind in automobile and chips as it lacks leading enterprises and high-tech talents in these industries.

It is learnt that Chinese auto firms are now on the lookout to take over foreign car manufacturers that are armed with special technology, after the acquisition of Volvo Cars in 2010 proved highly successful in technology innovation and marketing.

Wei opined that in the next 30 to 50 years, the Belt and Road Initiative will be the way forward for successful Chinese enterprises to enter the global market for a win-win co-operation as China’s Government develops strategies with foreign nations.

According to official data, China’s direct investments in Belt-Road nations – including Malaysia – hit US$14.8bil (RM61bil) in 2015, up 18.2% from 2014.

In the first quarter of 2016, direct investments to Belt-Road countries totalled US$3.6bil (RM14.8bil), a rise of 40% compared to the first quarter of 2015. Most of these investments had gone to Singapore, Indonesia, Malaysia and India.

Ranked by Peking University as “the least investment risk” among the Belt-Road countries, Singapore is ahead of its Asean neighbours in grabbing opportunities: It has already signed with Chinese-funded banks to bring in financing worth over S$90bil (RM270bil) to finance projects for high-speed rail, ports and the communication industry in South-East Asia.

“The Belt-Road vision is that government sectors and enterprises should not seek quick success and instant profits, but should create long-term effects, benefit local enterprises, people and countries, and make China be seen to be a reliable partner,” said Wei.

Sources: Ho Wah Foon The Star/Asia News Network

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Philippine President Rodrigo Duterte's anti-drug war confuses US, allies

Quotes: 'Philippine President Rodrigo Duterte surprised the Western world recently by threatening to “separate from the UN,” and saying he would invite China and African countries to form a new international body.'

Philippine President Rodrigo Duterte surprised the Western world recently by threatening to "separate from the UN," and saying he would invite China and African countries to form a new international body.

Duterte's threat came in response to the UN's criticism of his anti-drug war that has seen more than 700 suspected drug traffickers shot dead on the spot by the military and police.

Philippine society is severely afflicted by drugs. Statistics show there are over 3.7 million drug addicts in the country, and drug dealers have formed a secure business network in collaboration with corrupt authorities. Duterte has publicly allowed military police officers to fire at will if necessary, and he has even encouraged vigilantes to kill defiant drug traffickers.

Duterte's new policy has won him great popularity and more than 600,000 drug traffickers and addicts turned themselves in half a month. However, the harshness of the anti-drug war has annoyed many Western media and human rights groups, which keep blaming Duterte for violating the rule of law and human rights.

Duterte's lash-out against the UN also featured criticism of the US. "Why are you Americans killing the black people there, shooting them down when they are already on the ground?" he asked. He also blamed the UN for not doing enough to deal with the human rights crises that are happening in Iraq and Syria and allowing big powers to bomb villagers and children.

Duterte's outspokenness makes him stick out among US allies. He was even dubbed the Philippines' Donald Trump before he was elected. His big mouth has raised concerns among the US and Japan particularly, which do not know whether he just talks, or he will walk the talk.

The Philippines' biggest value for the US and Japan is its territorial disputes with China in the South China Sea. Washington and Tokyo hope Duterte could remain aggressive like his predecessor Benigno Aquino III and continue serving as a bridgehead for their geopolitical game against China, but Duterte does not find this role tempting. He knows that the US and Japan will benefit in the South China Sea tensions, not the Philippines.

Duterte does not want his energy to be heavily consumed by the long-standing territorial disputes, but wants to put more effort into domestic governance. His first action is to eliminate the most disturbing problem of drugs. However, even though his radical move has gained popularity among the Filipinos, it is against the Western-branded universal value of human rights.

If the anti-drug war continues to expand in the future, pressures from the US and the rest of the Western world will rise dramatically, and the Philippine-US relationship will also be victimized and become bumpy.

The Philippines and the US are close allies with many rifts. Manila needs Washington, but holds aversion to any aggressive intervention in the Philippines' home affairs. This, instead of the South China Sea disputes, is the crux that lies within Philippine society. - Global Times

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