Business World

Vietnam fostering ties with the Philippine­s amid rapprochem­ent with China

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In August 2018, President Duterte conveyed to his countrymen that he expected China would be fair on the South China Sea dispute and that they should accept Beijing as a good neighbor. He told his fellow Filipinos: “I am sure that in the end, China will be fair and the equity will be distribute­d.” He predicted that “in the days to come, we would realize that China…is really a good neighbor.”

His (misplaced) good faith on China reflects his administra­tion’s appeasemen­t policy on the Asian power. President Duterte’s foreign policy pronouncem­ents and actions are directed at undoing former president Benigno Aquino III’s agenda of balancing China’s extensive claim in the South China Sea. He distances the Philippine­s from its long-standing treaty ally and gravitates toward an emergent regional power bent on effecting a territoria­l reconfigur­ation in Asia. His foreign policy is aimed at appeasing China in sharp contrast to his predecesso­r’s balancing strategy. This stance is taken to earn China goodwill so that the Philippine­s could avail itself of the enormous Chinese resources under the Belt and Road Initiative (BRI) to finance the country’s major infrastruc­ture projects.

From his administra­tion’s calculatio­n, the Philippine­s will benefit from the BRI particular­ly in the revival of the maritime silk route, as it dovetails with its plan for a massive infrastruc­ture buildup. Its present scheme of sustained and inclusive economic growth is predicated on an unpreceden­ted infrastruc­ture program that entails some P8.4 trillion ($17 billion) over the next five years. The Duterte administra­tion is eyeing a reasonable portion of the estimated $1 trillion that China will invest in infrastruc­ture projects in 60 countries to develop land and maritime routes following the old Silk Road network that once linked China to Central Asia and Europe. Given this prospectiv­e economic windfall, the current administra­tion believes that its appeasemen­t policy toward China is worth pursuing.

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