FOR the longest time, China and the Philippines have maintained quite a formidable partnership which dates back to the 12th century.
The partnership drove many of the Chinese traders to marry locals and settle down in the country where they established businesses. Their concentration established in 1594 in Binondo, Manila, the oldest Chinatown in the world.
Referred to as Chinoys, they enjoy the legitimacy of being Filipino citizens.
Moving forward, Chinoys proved quite an indomitable factor in the Philippine economy amid thriving business and providing employment to locals.
When former President Rodrigo Duterte took helm at the Palace, the government’s foreign policy paved the way for more Chinese to enter the Philippines – some of whom were even appointed in the government.
Under his administration, Chinese businessmen cornered juicy government contracts for which Duterte went under fire for “favoring” Chinese over the Filipino entrepreneurs.
When Ferdinand Marcos Jr. assumed the presidency, citizenship procedures were eased and many Chinese became citizens. Ironically though, the government purge against Philippine Offshore Gaming Operators (POGO) somehow affected this and the tourism sector.
Tourism Secretary Cristina Frasco averred there is, indeed, a significant decrease in the arrivals of Chinese nationals visiting the country — from one million in 2021 to just 300,000 currently.
Drawing conclusions from the DOT data, the suspension of the electronic visa adversely affected the Chinese market for the Philippines.
In May of last year, the Philippines tightened its visa requirements for Chinese tourists amid a high number of fraudulent applications received in its embassy and consulates in China.
During his third State of the Nation Address (SONA) in July 2024, Marcos declared a total ban on POGOs as their operations had been linked to criminal activities.
Aside from tourism, also shaken was employment of Filipinos working for Chinese POGOs.
The purge created a negative perception among legitimate Chinoys. Some are now being accused of price manipulation, hoarding and profiteering via competition-decimating cartels — not to mention the escalating tension at the West Philippine Sea.
From how it looks, the administration seemed overreacting to the detriment of the Philippine economy, unless the government has a viable contingency plan that would cover the losses that the Philippines would incur as a result of the sweeping purge.
Burning bridges with China doesn’t resolve the problem.