by Lucio Pitlo, III 

Last August 22, 2020, the Philippine Association for Chinese Studies held a webinar on “Assessing the Belt and Road Initiative in the Philippines Before and During the Covid-19 Pandemic, 2015-2020.” The speakers were Alvin Camba, a Ph.D. in Sociology candidate at the Johns Hopkins University, and Dr. Liu Peng, Associate Professor at the Center for China’s Neighbor Diplomacy Studies at Yunnan University. PACS President Dr. Rommel Banlaoi gave the opening remarks and PACS Board of Director Dr. Tina Clemente introduced the speakers and moderated the webinar.  

Mr. Camba, who has been doing research on Chinese investments in Southeast Asia, argued that BRI has the promise to strengthen the Philippine state’s role in economic development. However, the politico-economic configuration in the country alongside international dynamics – Chinese political economy, geopolitics, maritime issues – makes Chinese projects less likely to attain immediate success. Projects either encountered problems related to elite infighting or tended to exacerbate existing development issues. The nature of its economic structure – dominated by the service sector – and bureaucratic and land issues posed problems for the country. On the other hand, controversial projects and problems with coordination and targeting constitute challenges for Chinese companies. Other investor countries are raising the stakes to compete with Chinese capital and support for Chinese projects abroad also face host country hurdles.

In his presentation, Mr. Camba also outlined some of the indirect impacts of BRI. This includes the gradual expansion of the state’s role in development, continuation of government talks and ties, the underrated role played by smaller firms, joint ventures, and people-to-people connections and its unintended facilitation of offshore gaming. He underscored the uneven implementation of Chinese-backed infrastructure projects and how they exacerbate existing development issues – a phenomenon not unique to Chinese projects. He cited that the Kaliwa Dam and Chico River irrigation projects are progressing despite the pandemic as the government already committed funds for them. However, he stressed issues with train projects. Furthermore, Camba said that small Chinese investors with local partners will be less affected by political risks compared to big investments, especially by Chinese state-owned enterprises. Amidst the pandemic, he emphasized the importance of Chinese projects in bringing in much-needed capital. He also said that the health crisis throws spotlight on the need to boost the country’s manufacturing.

Dr. Liu shared the findings of a survey conducted on 36 Chinese enterprises doing business in the Philippines. The survey was part of the broader Overseas Chinese Enterprise and Employee Survey which covers 20 countries. As Chinese enterprises are at the forefront of implementing BRI, views of locally-hired workers offer interesting insights in how such investments are received and how they contribute to the economies of countries that welcome Chinese outbound capital.

The Philippine survey covered companies of varying scale (small, medium, and large), operate in the service and industry sectors, and have varying lengths of business operation in the country ranging from those registered and doing business since before 1995 to those which began after 2016. The survey involved 750 employees. Respondents came from both urban and rural areas and most obtained either university or secondary/high school education. The survey dispelled some prevailing notions about Chinese investments abroad. It also identified gaps in the corporate social responsibility (CSR) activities of Chinese enterprises and shed light on local workers’ views about the impact of Chinese investments and prospects for bilateral relations. Contrary to the notion that Chinese companies generally hire locals only for blue-collar jobs, the survey revealed that many were hired to perform managerial duties. In terms of labor law compliance, the survey showed that most Chinese companies provide social security and delays in paying salaries are rare. The survey also showed that local workers were able to establish friendly ties with their Chinese peers dismissing stereotypes that Chinese workers keep to themselves. Local workers also think that their Chinese employers respect local customs, traditions and religious beliefs. They also think that the promotion system is open and fair for both locals and Chinese workers alike. The survey, however, revealed shortcomings in CSR activities. While many Chinese enterprises are engaged in charitable donations and provide training, health, and educational programs, more has to step up in infrastructures, such as support for the construction of water conservation, power, sports, and other facilities that provide public goods.

The survey also asked respondents’ views towards the impact of China on the country in particular and to Asia broadly. Most respondents view Chinese investments as having a “positive effect” and “somewhat positive effect” on Philippine economic development, China’s influence in the country as “somewhat positive” and “positive” and prospects for bilateral ties as “good” and “normal.” Most respondents also think that China is doing “somewhat more good than harm” in the region, interestingly on the same level as that of the United States. Most think that China will be the most influential country in Asia in a decade and most show optimism about the future of ASEAN-China integration.

The survey challenged prevailing narratives and portrayal of Chinese capital from the lens of Filipino workers employed by increasingly global Chinese companies. While many respondents may not be all too familiar with the dynamics of US-China great power competition and China-ASEAN integration, they provided insights into the behavior of Chinese enterprises and their perceived impact on the domestic economy. Among the top issues confronting Chinese businesses in the Philippines include the dearth in skilled workers, irregular fees for utilities, taxes and export licenses, increasing competition with other foreign companies, and domestic political uncertainty. Chinese companies need to invest in CSR and public relations. They should try to look at social media and other tools to publicize their CSR activities and improve linkages with the communities where they operate. Dr. Liu highlighted the importance of employing multidisciplinary approaches to better understand the impact of BRI in host countries.

Former PACS President Dr. Ellen Palanca gave the synthesis. She challenged scholars to conduct more studies on the subject to generate more nuanced, circumspect, and intelligent findings essential for policymaking.