Abstract
This chapter illustrates how Philippines–China relations in the past two decades have been shaped by Philippine domestic politics and regional and global market forces. Philippine domestic politics—characterized as being personalistic, weak in institutions, and patronage-based, plus the lack of a coherent China policy—have contributed to the fluctuations in the Philippine diplomatic relations with China. Relations have also been affected by negative perceptions of China by the Filipinos—the effect of US alliance, anti-Communist ideology influence of Taiwan, and presently, China’s claim of islands in the South China Sea. Investments, loans and ODAs from China are very much affected by the health of the bilateral relations. However, bilateral trade and non-state-to-state investments are determined by external economic phenomena such as the impact of global supply network in the 1990s and 2000s, Global Financial Crisis in 2008–2009, and China’s economic rebalancing after the GFC, and more recently, China’s OBOR and AIIB initiatives. The paper also shows that, in the past few decades, Philippine’s outbound investments have shifted from China to ASEAN, which is aligned more with economic rather than political motivations, aligning with the Duterte administration’s aims to diversify its foreign engagements beyond the traditional partners.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
Bibliography
ABS-CBN News. “PNoy: JMSU with China, Vietnam ‘Shouldn’t Have Happened’.” 2011. Abs-Cbn News. Accessed June 30, 2017. http://news.abs-cbn.com/nation/01/04/11/pnoy-jmsu-china-vietnam-shouldnt-have-happened.
Ang See, Teresita. 2016. “Migration Trends and Their Socio-Economic Implications: The Ethnic Chinese Community.” Presentation in the Asia Pacific Pathways for Progress Foundation Forum Titled “In Search of a China Strategy: Unpacking the Bilateral and Regional Dynamics of Philippine-China Relations.” August 15, 2016.
Asia Sentinel. 2012. “The China-Philippine Banana War.” Asia Sentinel, June 06, 2012. http://www.asiasentinel.com/society/the-china-philippine-banana-war/.
Associated Press. 2015. “Metro Manila Traffic Costing PH P3 Billion a Day.” Philstar, September 16, 2015. Accessed on August 10, 2016. http://www.philstar.com/headlines/2015/09/16/1500512/metro-manila-traffic-costing-philippines-p3-billion-day.
Baviera, Aileen. 2012. “The Influence of Domestic Politics on Philippine Foreign Policy: The Case of Philippines-China Relations since 2004.” RSIS Working Paper No. 241.
Bueno de Mesquita, Bruce. 2017. “Foreign Policy Analysis and Rational Choice Models.” Accessed July 30, 2017. https://pdfs.semanticscholar.org/54af/a0ca13faca35a5623288deb3f94f08d3a2e8.pdf.
Bueno de Mesquita, Bruce, and Alastair Smith. 2012. “Domestic Explanations of International Relations.” Annual Review of Political Science 15: 161–181.
Burgonio, T.J. 2012. “China Duns PH for $500 M for NorthRail Loan.” Inquirer, September 26, 2012. http://globalnation.inquirer.net/51282/china-duns-ph-for-500-m-for-northrail-loan.
Business World. “China Port Operations Consolidated.” Business World, May 21, 2014. www.bworldonline.com/content.php?section=Corporate&title=china-port-operations-consolidated&id=87725.
Cai, Peter. 2017. Understanding China’s Belt and Road Initiative. Lowy Institute For International Policy 2017. https://www.lowyinstitute.org/sites/default/files/documents/Understanding%20China%E2%80%99s%20Belt%20and%20Road%20Initiative_WEB_1.pdf.
Chen, Jie. 2002. Foreign Policy of the New Taiwan: Pragmatic Diplomacy in Southeast Asia. Cheltnham: Edward Elgar Publishing Limited.
China Business Philippines. “Chinese Investments in the Philippines.” China Business Philippines. Accessed January 10, 2016. http://www.chinabusinessphilippines.com/index.php?option=com_content&view=article&id=111:chinese-investments-in-the-philippines-&catid=39:investment-update&Itemid=63.
China Embassy. 2004. “Is the Early Harvest Good for RP?” Accessed July 5, 2017. http://ph.china-embassy.org/eng/sgdt/t171568.htm.
Cooper, John. 2016. China’s Foreign Aid and Investment Diplomacy. New York: Palgrave Macmillan.
Davis, Alex. 2015. “Biggest Nickel Producer Can’t Mine Enough to Satisfy China.” Bloomberg, April 30, 2015. http://www.bloomberg.com/news/articles/2015-04-30/world-s-top-nickel-producer-can-t-mine-enough-to-satisfy-china.
DOF. 2016. “AIIB Eager to Finalize PHL Projects for Bank Financing.” December 19, 2016. Accessed February 2017. http://www.dof.gov.ph/index.php/aiib-eager-to-finalize-phl-projects-for-bank-financing/.
Dumlao-Abadilla, Doris. 2015. “Top Filipino Firms Build ASEAN Empires.” Philippine Inquirer, December 23, 2015. http://business.inquirer.net/204522/top-filipino-firms-building-asean-empires.
Endo, Jun. 2017. “Asia Needs $26tn for Infrastructure Through 2030: ADB Report.” Nikkei Asian Review, February 28, 2017. https://asia.nikkei.com/Politics-Economy/Economy/Asia-needs-26tn-for-infrastructure-through-2030-ADB-report.
Greiten, Sheena Chestnut. 2016. “The US-Philippine Alliance in Year of Transition: Challenges & Opportunities.” Brookings Working Paper.
Gungwu, Wang. 2005. “China and Southeast Asia: Changes in Strategic Perceptions.” In China and Southeast Asia: Global Changes and Regional Challenges, edited by Ho Khai Leong Ku and Samuel C.Y. Ku. Singapore: Institute of Southeast Asian Studies.
Guthrie, Doug. 2006. China and Globalization: The Social, Economic and Political Transformation of Chinese Society. New York: Routledge.
Haacke, Jürgen. 2005. “The Significance of Beijings Bilateral Relations: Looking Below the Regional Level in China-ASEAN Ties.” In China and Southeast Asia: Global Changes and Regional Challenges, edited by Ho Khai Leong Ku and Samuel C.Y. Ku. Singapore: Institute of Southeast Asian Studies.
Holstag, Jonathan. 2015. China’s Coming War with Asia. Cambridge: Polity Press.
Hunt, Katie. 2016. “China Allows Philippines Fishermen Access to Disputed Shoal in South China Sea.” CNN, October 31, 2016. Accessed October 30, 2017. http://edition.cnn.com/2016/10/31/asia/philippines-china-scarborough-shoal-fishermen/index.html.
Inquirer. “Exploring the Middle Kingdom.” 2016. Inquirer, October 16, 2016. http://business.inquirer.net/216779/exploring-the-middle-kingdom.
JLL. 2013. “Strong Growth in SEA Real Estate Markets to Support ASEAN Economic Integration by 2015.” JLL, June 4, 2013. http://www.jll.com/news/154/strong-growth-in-southeast-asian-real-estate-markets-to-support-asean-economic-integration-by-2015.
Kurlantzick, Joshua. 2007. Charm Offensive: How China’s Soft Power is Transforming the World. New York: Yale University Press.
Landingin, Roel. 2008. “Manila Halts Fresh ODA Loans from China.” Ft.com, February 19, 2008. http://www.ft.com/cms/s/0/1d1aa3ea--defa--11dc--91d4--0000779fd2ac.html.
Landingin, Roel. 2009. “Secrecy, Rush Mark Tender of Biggest MWSS Dam Project.” Philippine Center for Investigative Journalism. Accessed September 1, 2016. http://pcij.org/stories/secrecy-rush-mark-tender-of-biggest-mwss-dam-project/.
Landingin, R. 2010. “Chinese Foreign Aid goes Off-track in the Philippines.” South-South Development Cooperation: A Challenge to the Aid System, edited by The Reality of Aid Management Committee, 87–94. Quezon City: Ibon Books.
Landingin, Roel. 2012. “Angat Aqueduct: Rare Success in China-Funded Infra Projects in PH.” Rappler, July 16, 2012. http://www.rappler.com/business/8639-angat-aqueduct-rare-success-in-china-funded-infra-projects-in-ph.
Landingin, Roel. 2016. “Chinese Foreign Aid Goes Off-track in the Philippines.” Philippine Center for Investigative Journalism, 2010: 87–91. Accessed September 1, 2016. http://www.realityofaid.org/wp-content/uploads/2013/02/ROA-SSDC-Special-Report8.pdf.
Landingin, Roel, and Richard McGregor. 2007. “China State Grid Group Wins Philippine Auction.” Ft.com, December 12, 2007. https://www.ft.com/content/f385a5d6-a88d-11dc-ad9e-0000779fd2ac.
Lim, Benito. 1999. “The Political Economy of the Philippines-China Relations.” Philippine APEC Study Center Network. Discussion Paper No. 99-16, page 291.
Lim, Joseph. 2016. Impact of China’s New Normal on the Philippines. Unpublished.
Lim, Narzalina. 2016. “Tourism Prospects & Challenges.” Presentation in the Asia Pacific Pathways for Progress Foundation Forum titled “In Search of a China Strategy: Unpacking the Bilateral and Regional Dynamics of Philippine-China Relations.” August 15, 2016.
Malig, Jojo. 2011. “Arroyo Corruption Scandal Weakened China Influence—WikiLeaks Cables.” ABS-CBN News, August 29, 2011. http://news.abs-cbn.com/-depth/08/29/11/arroyo-corruption-scandal-weakened-china-influence-leaked-us-cables-say.
Mangahas, Mahar. 2016. “Trust in the US versus China.” Philippine Inquirer, October 22, 2016. http://opinion.inquirer.net/98411/trust-in-the-us-versus-china.
Mangahas, Mahar. 2017. “Filipinos Don’t Pivot.” Philippine Inquirer, May 27, 2017. http://opinion.inquirer.net/104326/filipinos-dont-pivot.
Palaña, Aberon. 2017. “Lawmakers Wants NGCP Back in Filipino Hands.” Manila Times, March 8, 2017. http://www.manilatimes.net/lawmaker-wants-ngcp-back-filipino-hands/316081/.
Palanca, Ellen. 1999. “China’s Changing Trade Patterns: Implications for ASEAN-China Trade.” In China’s Economic Growth and the ASEAN, edited by Ellen H. Palanca. Philippine APEC Study Center Network and Philippine Institute for Development Studies (15): 1–51. https://pascn.pids.gov.ph/files/Discussions%20Papers/1999/pascndp9920.pdf.
Palanca, Ellen. 2015. “China’s Trade with East Asia.” In The Rise of China: Three Essays on China’s Economy and “Soft” Power, edited by Joseph Y. Lim. Philippines: Philippine Association for Chinese Studies.
Palanca, Ellen. 2016. “Ph-Ch Economic Relations.” Presentation in the APPFI Forum Held at the University of the Philippines, August 15, 2016.
Pattugalan, Gina Rivas. 1999. “A Review of Philippine Foreign Policy Under the Ramos Administration.” Kasarinlan: Philippine Journal of Third World Studies 14, no. 3: 108–134.
PBGEA. 2015. “Banana Trade with China”. APPFI Roundtable Discussion on PH-CH Trade and Investment Relations, June 11, 2015.
Philippine Embassy. 2014. “Ph Investment Forum Co-organised with China Overseas Investment Federation.” Philippine Embassy News. Accessed March 5, 2016. http://investphilippines.gov.ph/philippine-investment-forum-co-organised-with-china-overseas-investment-federation/.
President Aquino’s Third State of the Nation Address. 2012. Accessed July 25, 2016. http://www.gov.ph/2012/07/23/benigno-s-aquino-iii-third-state-of-the-nation-address-july-23-2012[21]/.
Rodriguez, Rafael, and Sandoval, Benjamin. 2016. “Foreign Diversification of Philippine Firms.” Philippine Management Review 2016, 23: 17–26.
Romero, Alexis. 2016. “Philippines, China Sign $24-B Deals.” Philstar, October 22, 2016. http://www.philstar.com/headlines/2016/10/22/1636102/philippines-china-sign-24-b-deals.
Rueda, Nimfa. 2012. “Filipinos 2nd Largest Asian Group in US, Census Shows.” Inquirer, 2012. http://globalnation.inquirer.net/30477/filipinos-2nd-largest-asian-group-in-us-census-shows.
Satake, Minoru. 2015. “Philippine Conglomerate Ready to Take ASEAN.” Nikkei Asian Review, June 1, 2015. http://asia.nikkei.com/Business/AC/Philippine-conglomerate-ready-to-take-on-ASEAN.
Saw, See. 2007. “Asean-China Economic Relations: A Review.” In ASEAN-China Economic Relations, edited by Saw Swee-Hock, 1–12. Singapore: Institute of Southeast Asian Studies.
Sayson, Ian. 2014. “Nickel Shortage Propels Philippines Mining Boom: Southeast Asia.” Bloomberg, December 22, 2014. http://www.bloomberg.com/news/articles/2014-12-21/nickel-shortage-propels-philippines-mining-boom-southeast-asia.
Sheng, Lijun. 2007. “China’s Economic Relations with ASEAN: Developments and Strategic Implications.” In ASEAN-China Economic Relations, edited by Saw Swee-Hock, 295–317. Singapore: Institute of Southeast Asian Studies.
Simeon, Louise Maureen. 2016. “Global Ferronickel Targets More Exports to China.” March 29, 2016. Philippine Star, March 29, 2016. http://www.philstar.com/business/2016/03/29/1566995/global-ferronickel-targets-more-exports-china.
Suryadinata, Leo. 2005. China and the ASEAN States: The Ethnic Chinese Dimension. Singapore: Marshall Cavendish Academic.
Tabeta, Shunsuke. 2017. “China Power Giant Gobbling up Foreign Players.” Nikkei Asian Review, January 25, 2017. http://asia.nikkei.com/Business/Companies/China-power-giant-gobbling-up-foreign-players.
Tiglao, Rigoberto. 2012. “Aquino Axed Key Flood-Control Project in 2010.” Philippine Daily Inquirer, August 15, 2012. http://opinion.inquirer.net/34831/aquino-axed-key-flood-control-project-in-2010.
Trinidad, Dennis. 2016. “Institutional Mismatch and Chinese Aid in the Philippines: Challenges and Implications.” Asian Perspective 40, no. 2, April–June: 299–328.
Tuazon, Bobby. 2014. “The Highs and Lows of PH-CH Relations: Current Situation and Prospects.” Lecture Paper for GASS/ISEAS. Accessed July 30, 2017. http://www.cenpeg.org/pol-study/int/PAPER%20FOR%20GASS%20ISEAS%20lecture%20of%20April%2018%202014.pdf.
Tubeza, Philip. 2011. “Aquino Back Home with $13-B Deals.” Inquirer, September 03, 2011. Accessed July 3, 2016. http://globalnation.inquirer.net/11553/aquino-back-home-with-13-b-deals.
Wang, Vincent Wei-cheng. 2005. “The Logic of China-ASEAN FTA: Economic Statecraft of Peaceful Ascendancy.” In China and Southeast Asia: Global Changes and Regional Challenges, edited by Ho Khai Leong Ku and Samuel C.Y. Ku. Singapore: Institute of Southeast Asian Studies.
Wurfel, D. 1990. “Philippine Foreign Policy.” In The Political Economy of Foreign Policy in Southeast Asia, edited by David Wurfel and Bruce Burton. London: Palgrave MacMillan.
Xinhua. 2017. “Gov’t Figure Shows More Ch Tourists Visit PH in First Half of this Year.” Xinhua. Accessed September 1, 2017. http://news.xinhuanet.com/english/2017-08/19/c_136539108.htm.
“ZTE Controversy Timeline.” GMA, September 18, 2007. Accessed April 6, 2011. http://www.gmanews.tv/story/61035/ZTE-controversy-timeline.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2019 The Author(s)
About this chapter
Cite this chapter
Palanca, E., Ong, A. (2019). Philippines–China Relations: Interplay Between Domestic Politics and Globalization. In: Santasombat, Y. (eds) The Sociology of Chinese Capitalism in Southeast Asia. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-13-0065-3_5
Download citation
DOI: https://doi.org/10.1007/978-981-13-0065-3_5
Published:
Publisher Name: Palgrave Macmillan, Singapore
Print ISBN: 978-981-13-0064-6
Online ISBN: 978-981-13-0065-3
eBook Packages: Social SciencesSocial Sciences (R0)