The reason why China and India's economy remains strong is because of thier hard-line policies.
In India, a foreign company or business are not allowed if there is no 70% Indian ownership. That means 70% of profit will come back to India.
The same is true in China. For example Nike Shoes established branding in the US with production in China. Actually, there is no such thing as Nike factory in China, but shoes are made by 3 or 4 different contractors. So, 100% of profit in production will go to China. The US will only profit from branding royalty and not in production.
In the Philippines, very few companies would invest in production due to high fuel cost.
I have this insecure feeling if China will collaborate with Philippines. In terms of manpower, they have already surplus labors. Hence, they are only after of one thing and that is our natural resources.
That is true, Mr. Ferniz. As we speak, as China provides loans for the Philippines and shakes hands with our politicians, the People's Liberational Armed Navy is circumnavigating around the Spratley Islands and intruding in Philippine-held Kalayaan islands.
There are billions of gallons of natural gas around the Spratleys and China is already eying it.
Bottom Line:
Philippines needs a dual policy.
1) Maintain strategic relations with the United States, always
2) Engage with the Chinese in economic trade, other than that, do not give concessions.
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