Businessmen concerned with Chinese ‘occupation’

We received confidential information that several groups, particularly those from the business sector might try to get the Department of Foreign Affairs and the Office of the President itself to invoke the 1951 Mutual Defense Treaty between the Philippines and the United States wherein both nations vowed to support each other in case one comes under attack by a foreign entity.

Businessmen are convinced that the country is already “under attack” by China as proven by the release of a series of satellite photos by the Center for Strategic and International Studies’ (CSIS) Asia Maritime Transparency Initiative (AMTI) showing the extensive reclamation work conducted by China along Mischief Reef, or what we call Panganiban Reef.

A comprehensive special report by the Washington-based strategy and policy think-tank group gave a timeline of the reclamation activities conducted in the last few months by the Chinese on Panganiban – an oval-shaped formation approximately nine kilometers from its west bank to its east bank and six kilometers from its north bank to its south bank – and claimed by the Philippines, China, Vietnam and Taiwan.

As reported by AMTI, Panganiban/Mischief Reef falls within the exclusive economic zone of the Philippines, lying 129 nautical miles from Palawan. It was in 1995 when Filipino fishermen first reported seeing makeshift structures in Panganiban despite the claim laid by the Philippines on the reef. The structures on stilts were supposed to serve as shelters for stranded Chinese fishermen during storms, but this was soon transformed into a garrison for Chinese vessels. In 1998, the structures were upgraded to a single, permanent multi-storey building, the report went.

When Panganiban Reef was first occupied by China, the coral would become completely submerged during high tide. But as we can see in the satellite photo of CSIS/AMTI, a chain of small artificial land formations with new structures is now visible. A fortified seawall, construction equipment, dredges and Chinese vessels are also clearly shown. Other photos also show what seems to be a warship that can hold up to 800 personnel patrolling the south bank of the reef.

Foreign Secretary Albert del Rosario was spot on when he pointed out that China is in a hurry with its reclamation activities to put its military facilities and troops into place, changing the status quo to actualize its nine-dash line claim and control the entire South China Sea (West Philippine Sea) before the UN international arbitration body comes up with a ruling on the January 2013 complaint filed by the Philippines. As we have said before, possession is nine-tenths of the law.

Defense Secretary Voltaire Gazmin also denounced the reclamation activities of China which could impact security in the region and could affect freedom of navigation and airspace. Some $5 trillion worth of maritime trade passes through the South China Sea every year, and one can only imagine the kind of control the Chinese will have on the global economy.

Just how serious the situation has become can be gleaned by the statements of US President Barack Obama in reaction to the release of the satellite photos, virtually telling China not to use its muscle to “elbow aside” other smaller countries like the Philippines and Vietnam. The barrage of criticism was probably the reason why for the first time, China felt compelled to explain about the artificial islands it has been constructing all over the disputed territories in the South China Sea.

“We are building shelters, aids for navigation, search and rescue as well as marine meteorological forecasting services, fishery services and other administrative services,” said Chinese Foreign Ministry spokeswoman Hua Chunying during a news briefing, adding that their activities are reasonable, within the bounds of the law and not directed against any other country.

US State Department spokesman Jeff Rathke, however, called the massive reclamation activities “destabilizing,” adding that it was “fueling greater anxiety within the region about China’s intentions amid concerns that they might militarize outposts on the disputed land features in the South China Sea.”

Beijing, of course, bristled at the criticism from the US, virtually telling the latter not to meddle in an issue where it has no regional claim. But as US Defense Secretary Ashton Carter correctly pointed out, China’s growing boldness with regard to the disputed territories is not just an American concern, but of all other countries in the region. Like we said in our Sunday column, when will China stop? Or more importantly, who or what is going to stop the Chinese aggression?

The next big thing on technopreneurship

We came across a couple of Wall Street Journal articles predicting that the next big technology start-up may come from the Philippines as entrepreneurs who seek to address everyday challenges faced by ordinary Filipinos are getting a boost from “incubators” like Smart Communications. Incubators are actually organizations that breathe life on promising start-ups through funding and other forms of support.

IdeaSpace, a non-profit organization allied with Smart, launched a yearly nationwide contest in 2013 to seek the most innovative start-ups that show promise in providing breakthrough solutions to challenges faced by Filipinos. Winners are given $50,000 in funding and ongoing support from Smart/ IdeaSpace Foundation.

One such start-up was founded by a young woman who saw how people would walk 50 kilometers to buy kerosene lamps. Challenged, she came up with a lamp that can provide eight hours of light using just a cup of saltwater – and thus Sustainable Alternative Lighting or SALt Corp. was born. Today, a lot of investors are lining up to back the invention which received a boost from IdeaSpace. Incidentally, the new batch of winners will be announced this May according to IdeaSpace president Earl Valencia.