Marcos likely to embrace more allies in West amid worsening Chinese ties

By Kyle Aristophere T. Atienza, Reporter

PHILIPPINE President Ferdinand R. Marcos, Jr. is expected to further embrace western nations as China steps up its expansionist activities to boost its sluggish economy, political analysts said at the weekend.

Mr. Marcos returned to Manila on Saturday from his trips to Europe with $4 billion in investment pledges from Germany and the Czech Republic.

The Philippine leader has also secured the support of Berlin and Prague for the Philippines’ bid to have a free trade agreement with the European Union (EU).

“The momentum surrounding Manila’s economic ties with Europe offers a chance for the Philippines to strengthen alternative means of commercial activity amidst Chinese belligerence,” Don Mclain Gill, who teaches international relations at De La Salle university, said in a Facebook Messenger chat.

The investment pledges that Mr. Marcos got during his European trips covered renewable energy, manufacturing, innovation, business process outsourcing, mineral processing, agriculture and aerospace, his office said in a statement on Sunday.

On top of these, the Philippine leader also unveiled a plan by Lufthansa Technik to build a second hangar in Clark north of Manila worth $150 million.

Among the German companies that had a meeting with Mr. Marcos during his Europe trip was Siemens AG, which announced a plan to put up a Healthineers Training Center in the Philippines amid growing demand for advanced healthcare services among Southeast Asian nations.

He also had a meeting with German aerospace company Airbus, which committed to work with the Philippines’ Transportation department in extracting carbon energy from Philippine landfills for use in the aviation sector.

Airbus also vowed to help the Philippines build its defense capabilities and take its joint venture partnership with the Philippine Aerospace Development Corp. to the next level.

China was the first country Mr. Marcos visited last year, bringing home P22.8 billion in investment pledges from Chinese investors.

Philippine-China relations have worsened since then amid Chinese attempts to block resupply missions to Second Thomas Shoal in the South China Sea, where the Philippines deliberately grounded a World War II-era ship in 1999 to assert its sovereignty.

Mr. Marcos said before leaving Manila for Germany the Philippines should step up economic ties with “like-minded nations.”

The Philippine Foreign Affairs department has filed almost 150 diplomatic protests against China since Mr. Marcos assumed office in July 2022, and a Chinese envoy said earlier this year the two countries’ relations were at a crossroads.

“His recent trips to Germany and the Czech Republic cemented the Philippines’ legitimacy as a trusted friend of the West,” said Chester B. Cabalza, founder of Manila-based International Development and Security Cooperation.

“Many of the modern military materiel possessed by the Armed Forces of the Philippines for its aerial, terrestrial and naval arsenals came from Europe,” he said in a Facebook Messenger chat.

‘FALLOUT’
In his visit to Belgium last year, Mr. Marcos outlined his vision of greater cooperation with the West to increase trade, protect Filipino seamen and promote a rule-based order in the South China Sea, Mr. Cabalza said.

“Manila is showing Beijing that it can withstand China’s hostility,” he said. “A strong Philippine economy is a natural deterrence against China’s aggression amid Chinese economic recession.”

Chinese President Xi Jinping earlier this month called on his country’s armed forces to coordinate preparations for military conflicts at sea and help in the development of China’s maritime economy.

The International Monetary Fund expects China’s growth to slow to 4.6% this year from about 5.4% last year.

Chinese growth last year was driven by the resilience of the high-tech and service sectors, “while challenges came from declining property investment, debt risk and weak consumption growth,” according to the East Asia Forum.

“Manila’s attempt to optimize its partnership with the EU is mutually necessary given the structural changes in the international system,” Joshua Bernard B. Espeña, who teaches international relations at the Polytechnic University of the Philippines, said via Messenger chat.

He said the EU has been diversifying its sources of economic partnerships as it tries to de-risk from China and Russia, which has a war with Ukraine.

“Meanwhile, the Philippines also wanted to go beyond the US and China as the only major sources of its trade,” he said. “Not to mention that Manila provides a large source of seafarers needed in European shipping companies in post-COVID production to boost the global supply chain.”

The Philippine Transportation department and its German counterpart last week signed a deal to enhance their cooperation at sea.

Manila and Prague, meanwhile, signed a joint communique on the establishment of labor consultation mechanisms.

Prague also said it would increase its quota for Filipino workers from 5,500 to 10,300 yearly starting May.

The Philippines should boost trade and maritime cooperation ties with the EU regardless of the state of its relations with China, said Terry L. Ridon, an investment analyst and convenor of InfraWatch PH.

“The employers of millions of Filipino seafarers are European firms, and improving our relations with Europe is of paramount national interest to maintain our competitive advantage in the global maritime industry,” he said via Messenger chat.

The Philippines in November scrapped a $4.9-billion funding deal with China for three rail projects after Beijing failed to respond to funding requests.

During a high-level trade mission to the Philippines last week, US Commerce Secretary Gina Raimondo unveiled plans to invest more than $1 billion in the Philippine technology sector.

“Geostrategically, the Philippines needs to gather all possible allies and partners to reap economic benefits as much as possible to absorb the shocks of the fallout of future conflicts that may affect the Philippines,” Mr. Espeña said.