Philippine senator seeks ban of Chinese building company

A SENATOR on Monday asked the government of President Ferdinand R. Marcos, Jr. to ban state-owned Chinese Communication Construction Co. Ltd. (CCCC) from the Philippines.

Senator Ana Theresia “Risa” Hontiveros-Baraquel’s call comes a day after Chinese Coast Guard ships blocked and fired water cannons at Philippine Coast Guard vessels en route to deliver supplies to Filipino troops at Second Thomas Shoal in the South China Sea.

“China is not a friend,” she said in a statement. “She is not even a good neighbor. We won’t allow her to insult our fellowmen in their own sea. Banning one of their state-owned companies is a way to tell China that we will not tolerate any abuse anymore,” she said in Filipino.

The Finance department had terminated the loan application process for major CCCC-funded projects including the Davao-Digos rail segment, the Calamba-Matnog long haul rail and the Subic-Clark rail, Ms. Hontiveros-Baraquel said.

Loan negotiations have resumed under the Marcos Jr. government, but the senator said it is in the interest of the Philippines to decline any CCCC funding.

“There is no unique advantage to having Chinese banks and Chinese contractors being involved in these mega projects,” she said. “One might even argue that the Asian Development Bank (ADB) or Japan, and maybe even the Philippine private sector, will be a better match for these projects.”

The lawmaker noted that if the Tutuban-to-Clark rail is based on Japanese technology and ADB environmental and social safeguards, the government might as well choose them for other connected projects.

“Why was it given to China?” she asked. “Why should it be given to a company with a history or destroying our natural resources in the West Philippine Sea,” she added, referring to areas of the South China Sea within the country’s exclusive economic zone.

In 2020, Ms. Hontiveros-Baraquel called on the government to drop projects with the CCCC, after it was revealed that it was among the dozens of companies that contributed to the dredging and construction of artificial militarized islands in the disputed waterway.

“The CCCC is a predatory company,” she said. “It works in conjunction with the Chinese maritime militia to deliberately destroy coral reefs in the West Philippine Sea and poach endangered giant clams. It acts in the guise of a legitimate business, but it is only aiding the Chinese state in its creeping invasion.”

Ms. Hontiveros accused the company of colluding with the Chinese government to steal Philippine territories in the South China Sea. “It’s only proper to drive it out of the country.”

“The Executive should also look into existing government projects with this company and stop any engagements as soon as possible,” she said.

DEFENSE INDUSTRY
Meanwhile, Senate President Juan Miguel F. Zubiri pushed the approval of several bills that seek to boost the country’s external defense, including the proposed Philippine Defense Industry Development Act.

These measures are key to government efforts to build a credible and concrete defense program, he told a hearing.

“Amidst growing national concern over our sovereignty, it is very timely that we now consider the merits of revitalizing our self-reliant defense posture program and building a local defense industry that would supply the needs of our Armed Forces,” Mr. Zubiri said.

He added that while the Philippines values its defense cooperation with its foreign allies, it could not afford to rely on them entirely. “Overreliance on our allies leaves us on the back foot — always waiting, and always dependent on what they will supply us with.”

The Senate chief said it’s a pity the Philippines has to beg other countries for arms and ammunition. “Our brave men and women of the Armed Forces deserve more and deserve better.”

Mr. Zubiri said the Philippines is among the top importers of arms in Southeast Asia, having spent $338 million (P19 billion) on imports in 2021 — next only to Singapore ($361 million) and Myanmar ($394 million).

“Unlike Singapore, however, we have a great deal of resources at our disposal. And unlike Myanmar, we are not operating under military rule. So why is our arms importation nearly as costly as theirs?” he asked.

The lawmaker said a closer comparison would be Indonesia, which in 2021 allotted 3.9% of its spending toward military expenditure, not far from the Philippines’ 3.8% military budget. And yet Indonesia’s arms imports were only $68 million.

Mr. Zubiri said Indonesia has a big arm manufacturing industry, so it imports less.

“Indonesia’s defense industry has been growing exponentially, in fact, that the Indonesian government is now expecting to join the world’s 50 top defense companies by next year,” he added.

He said they discussed this with Mr. Marcos, who is keen on coming up with the country’s own defense industry. — Norman P. Aquino and Jan Jiminel Cacdac