The Philippines needs to take a cue from Peru which has focused on and benefited from forging close economic relations with China, a forum in Manila heard on Nov 18.

In a hybrid forum on people-centered common prosperity organized by the Asian Century Philippines Strategic Studies Institute (ACPh), analysts lauded the Nov 14 launch of Chancay Port, a natural deep-water port about 78 kilometers north of Peru’s capital, Lima, and one of the key projects under the China-led Belt and Road Initiative.

Herman Tiu Laurel, president of ACPh, said that unlike Peru and other South American countries that have chosen to expand trade with China (thanks to BRI projects like Chancay Port), the Philippine government under President Ferdinand Marcos Jr has focused more on contesting the country’s claim over the South China Sea.

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“It is important for Filipinos to be reminded that trade and economic relations the country is involved with should be top priority for this nation. But, sadly, this is being forgotten in the past two years,” Laurel said, referring to Manila’s ongoing tensions with Beijing over the South China Sea.

Laurel cited the Philippines’ expanded military alliance with the United States in light of the dispute over the South China Sea and how this has disrupted national unity and pushed the Philippines to withdraw from the BRI. He said this can hurt the country’s infrastructure development owing to the Philippines’ limited fiscal space.

“Why back out of the Belt and Road Initiative when you are already short of funds for so many other projects that are so essential for the economic development of the country and for the economic accomplishment of the population of the country?” he said.

In October 2023, amid tension over the South China Sea, Transportation Secretary Jaime Bautista said the Philippines would no longer seek financial aid from China for its three railway projects and that it would look for other sources of funding. But Bautista said this decision had nothing to do with the territorial dispute.

Adolfo Paglinawan, ACPh vice-president and a former diplomat, said Peru has gained from its stronger economic ties with China. In contrast, he said, the Philippines has incurred lost opportunities on the back of its continued dispute with China.    

“We’re mostly interested in lawyering for the Americans to render reputational costs against China,” Paglinawan said in a paper that was read at the ACPh webinar. Paglinawan was not able to personally attend the forum.

He said the Philippines is “missing many opportunities” as China continues building a community with a shared future with other developing countries.

Paglinawan said the Philippines’ “dalliance” with the US is “counterproductive and destructive geopolitics” and proposed that the Philippines should instead be engaging with ascending economies now aligned with BRICS, referring to the grouping of emerging economies that began with Brazil, Russia, India and China.  

He said the Philippines lags behind its Southeast Asian neighbors when it comes to Chinese investment and other opportunities.

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“We now see China’s infrastructural assistance going to Indonesia, Chinese investments going to Malaysia and Vietnam, and Chinese tourists going to Laos and Cambodia,” Paglinawan said.

Celso Cainglet, professor of philosophy at the University of the Philippines, said China needs to counter propaganda against the Chancay Port. He cited reports on how Peru will fall into a debt trap or how the port is hurting Peruvian fishermen.

“This propaganda works,” he said, urging that China should launch a campaign that allows more people to understand how the project will benefit them.

Contact the writer at prime@chinadailyapac.com