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Duterte’s recent visit to China has affirmed the Philippine’s intention to join China’s One Belt One Road initiative. This initiative seeks to integrate the national economies of countries that span the traditional silk road and the modern maritime silk road. This initiative is seen by the Chinese government as one way to ensure the continued growth of the Chinese economy. It is in line with China’s policy of openness which Xi Jinping re-affirmed in his recent speech in Seattle Washington
China will never close its open door to the outside world. Opening up is a basic state policy of China. Its policies that attract foreign investment will not change, nor will its pledge to protect legitimate rights and interests of foreign investors in China, and to improve its services for foreign companies operating in China.
Duterte was right to re-establish good diplomatic relations with China and to ensure that the Philippines take part in this initiative that seeks to connect the worlds biggest economies from Europe to Asia. It is also important that the Philippines take advantage of the financial instruments made available through OBOR in building up the country’s infrastructure. The Duterte administration has promised to significantly increase infrastructure spending to ensure that economic development is further strengthened by a solid infrastructure network that facilitate commerce and trade. The financing opportunity offered by the Asian Infrastructure Investment Bank is an opportunity the Philippine should not miss. Even Germany and the UK have signed on to the AIIB because they see the value of such a financing arm and the projects it seeks to support.
Asia is the fastest growing economic zone in the world with China and India leading the way. This is the reason why the US aggressively pushed for the Trans-Pacific Partnership (TPP) agreement. The TPP was seen as a way for the US to take a leading role in integrating and opening up major Asian economies. This would have been a great deal for Asian economies like the Philippines to be part of however the TPP has lost steam in recent months with the growth of anti free trade sentiments in the US. Donald Trump outright calls all trade deals as bad and Hillary Clinton has even distanced herself from the TPP publicly stating she will not support the deal in the form it has today. Even major European economies are battling ideological shifts away from free-trade agreements. Given the grim future of the TPP, OBOR is the best alternative and in my opinion the right alternative for the Philippines.
When Duterte said that China was a better fit for the Philippines due to similar cultural sentiments, he was spot on. The US lead globalization that we have seen in the past was driven by two over-arching cultural ethos – individualism and meritocracy. The US and most European countries have an over emphasis on individualism and meritocracy. There is nothing inherently wrong with individualims and meritocracy however it is not the right fit for Asian cultures that put a primacy on harmony, solidarity and stability.
OBOR’s emphasis is on integration and harmony as seen by this quote from Xi Jinping’s speech.
China has benefitted from the international community and development, and China has in turn made its contribution to global development. Our Belt and Road initiative, our establishment of the Silk Road fund, and our proposal to set up the AAIB, are all aimed at helping the common development of all countries, rather than seeking some kind of spheres of political influence. The Belt and Road initiative is open and inclusive; we welcome participation of the U.S. and other countries, and international organizations.
TPP’s emphasis on the other hand is again about American exceptionalism. Just look at how the Office of the US Trade Representative explains the importance of TPP.
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Right now, Duterte’s move towards China is a pivot towards harmony and integration. In a region where there is so much economic opportunity, harmony and integration with your neighbors is the best strategy. We can still keep our lines open with our distant relative Uncle Sam, but we do not have to follow their lead this time.
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