What Chinese investments are currently ongoing in the Philippines?
- China’s Belt and Road Project
- Country-Wide Utilities Supply
- International Trade
Chinese investment in the Philippines has been strengthened by the Belt and Road Initiative (BRI). It aims to strengthen the interconnectivity of countries all over the world through a number of investments. China has been investing in infrastructure, manufacturing, and global trade in developing countries worldwide, including the Philippines.
These investments can help the improvement of Philippine products made in multiple provinces and introduce them to the global market. This could also be the key to bettering infrastructure in a number of places in the country.
Here are a few ongoing Chinese investments in the Philippines.
China’s Belt and Road Project
The Belt and Road Initiative is an international project that aims to redistribute the flow of goods around the world in order to jumpstart economies. China is aiming to address the issue regarding global development, as there are a number of countries that have the potential to further develop their local economy.
The BRI aims to do this by supporting a number of investments in different continents. It believes that economic development can be improved through 4 courses of action:
- Better intergovernmental communication to align policies on regional development
- Focusing on the development of interconnected infrastructure
- Developing soft infrastructure such as more trade deals and regulatory standards
- Providing local citizens with international connections and opportunities
According to the Philippine Statistics Authority (PSA), foreign investors are investing the most in the manufacturing industry — a whopping P58.8 billion in total. The Philippines is known for its production of electronic components, automobile components, and petroleum products. The BRI will be able to provide the country with new factories as well as machinery for the creation of these items. Investments are also going to be a major help in helping create new employment opportunities for citizens across the nation.
For years, the Philippine Department of Trade and Industry (DTI) has been trying to reach a wider audience for these products in the global market. Chinese investment opportunities in the Philippines will not only be able to help these manufactured products reach a number of countries, but it will also give the Philippine people enough funds to refine their processes.
Country-Wide Utilities Supply
The Philippines is a third world country made up of 7,107 islands. A number of provinces and regions are yet to receive a constant supply of electricity, gas, and water. China has been investing in these areas in order to help provide a country-wide supply of these necessities. With an investment of P13.3 billion, China is helping supply electricity, gas, steam, and air conditioning all over the country.
Renewable energy is also another sector that China is interested in helping to develop. The Department of Energy (DOE) is collaborating with Chinese companies in order to promote renewable energy sources. These can greatly reduce the cost that citizens need to pay in order to set up electricity in their municipalities. Renewable energy sources in the Philippines include hydroelectric power, solar power, and wind energy.
The Philippines has a number of industries that can be introduced to different continents around the world. With BRI, the global market is further expanded for the assimilation of significantly more Philippine products. The initiative encourages this by investing in the creation of factories and manufacturing infrastructures with the latest technology. This not only greatly improves the quality of multiple products, but also increases their production rate.
Currently, the top Philippine products being exported are electronic products, machinery & transport equipment, wood manufactures, chemicals, and coconut oil. The top trading partners of the Philippines are the United States, Hong Kong, Japan, and China. With the BRI, Philippine products can be exported to more countries in further continents. The project does this by investing in international delivery systems such as shipping and e-commerce.
The first step that is being taken for the improvement of international trade is networking between experts in various fields. BRI believes in improving the interconnection of countries through expert, student, and cultural exchanges. Tourism is also another way for investors to visit a country and experience what it has to offer.
Infrastructure development in the Philippines has slowed down significantly in the last few years due to a lack of funding. China is one with the Philippines in the hopes of building sustainable infrastructure. These Chinese investment opportunities in the Philippines can restart the planning and construction of infrastructure in a number of cities. This means cementing dirt roads, creating homes made of stable material, and even setting up offices for more business opportunities.
With the help of Chinese investment in the Philippines, the local economy can begin to thrive even more. Small-scale manufacturers can further refine the products that they make with the help of new forms of technology and machinery. They could also speed up the process of the creation of these items in order to keep up with the global demand. These investments can help turn the Philippines into a global competitor in terms of manufacturing and trading. China’s Belt and Road Initiative has the ability to be a game-changer that could shake economic relationships all over the world.