The Philippines Should Turn Predator, Like China

Here is what we are coming to understand. 

Chinese Attitudes Toward Japan

China is engaged in a coordinated national effort aimed at acquiring additional resources as cheaply as possible. Stealing of other nation's lands is among the tactics included in the thrust. China's initiatives are as follows:

• Develop Chinese mining and resource production.

• Hoard the world's rare earth minerals critical in the manufacture of electronic goods. China can cut the world off from rare earth minerals at any time for any reason.

• Invest in mining around the world with major efforts in South America and Australia. Ecology is not a primary concern. Acquisition of cheap minerals in bulk is the driving force.

• Smuggle ores from lands such as the Philippines where corruption allows this. "If we can get it, it is honest, because we need it."

• Claim the entire West Philippine Sea, even if it is within other nations' exclusive economic zones. That is, even if it belongs rightfully to others.

• Step up vocal and military might to intimidate smaller nations. Use a divide and conquer strategy to keep other nations from gaining power. Military officials are permitted to use aggressive and threatening language.

• Embark on aggressive military-based cyber-spying and harassment to enter private and public computers around the world to gain information or create havoc. For example, U.S. newspapers have been attacked as have government computers.

Many of us are perplexed with China's incivility and obstinacy. It is rather frustrating to have China sitting on rocks so close to the Philippine coast. Most Filipinos I am sure wish China would simply get off the rocks and go away.

She won't.

Even if the Philippines wins its UN arbitration, there is no enforcement mechanism, and China can explain away everything with sharp, challenging words condeming anyone who is not on the China path

I don't see a Philippines that has its act wholly together to deal with that. Most people just watch Secretary Del Rosario push back. One man with a tough job. Some seem to help China, whether inadvertently or purposefully, I can't tell.

The U.S. defense agreement is crucial to Philippine well-being. But even knowledgeable people like Senators Legarda and Santiago are busy driving wedges between the US and Philippines over something as trivial as a boat stuck on a reef (not trivial in terms of the value of reefs; trivial in terms of the shake-out in world order that is occurring).

I've argued that the Philippines should stand up for its own interests and use the might of the U.S. as a defensive backstop in case China's greed goes beyond intimidation and "occupancy around the edges", as is now occurring. It need not bow to the U.S. because its interests are perfectly aligned with those of America. The two nations should be doing more to put this alliance together properly. As I've written:

• People like Senator Santiago should sit down and shut up about the VFA. If there is a need to renegotiate it, do so out of the hearing of the sensationalist press.

• People like Senator Legarda should think about the bigger and more important national strategy of building a strong defensive alliance rather than engage in public acts (possibly so that she, personally, can gain votes) that disparage that alliance, as she proposes to do with hearings about the Tubbataha incident.

• The awkward coordination that is occurring regarding Tubbataha between the U.S. and Philippines is a horrible representation of a strong alliance. The U.S. is secretive. The Philippines is trying to project that it is in charge of things, the top dog in the matter. No, no, people. Everything you do should be structured to prove that this is an effective TEAM. That both nations are on the same TEAM.

But those issues can be set aside for now.

I would like to suggest an initiative that can be driven entirely by the Philippines that will counter China's ridiculously offensive aggression.

• The Philippines should slip into the economic hole that is being created between China and Japan. Find every instance where Japan is manufacturing in China now and try to get that company to move to the Philippines.

Concurrently, get the Philippine industrial welcome in order. Designate where the firms can relocate to on an expedited basis (Subic, or near Clark where Yokohama already has a plant, in Cavite where Japanese companies are looking to set up shop, and elsewhere within the Philippines). Make sure those locations are set to accelerate and assist relocations, not throw up short-sighted roadblocks seeking near-term fees from companies coming in. Indeed, GIVE value rather than try to squeeze the Japanese companies. Offer tax incentives to ease the cost of relocating. MARKET the Philippines.

As for the 40% ownership requirement, establish a national trust to own the Philippine 60% of each company, funded in partly by the Japanese companies themselves and partly by the Philippine government with the trust run like an investment bank. That is, the trust would not be engaged in the running of the business proper, but would be engaged in monitoring the company's finances and operations so that investor money (Philippine taxpayer money) would be properly cared for.

If Philippine investment bankers and attorneys can't figure out how to structure such an animal, call in American investment banking expertise. They can paper over anything, even Constitutions.

Japanese manufacturing companies may not be the only targets for such a strategic initiative. South Korea may also prefer to establish manufacturing plants in a nation backstopped by American reasonableness, over Chinese self-serving craziness. Or American companies whose executives recognize that things in China are going south.

And service companies will also come over behind the manufacturing companies (banks, insurers, etc., Philippine laws permitting).

If China wants to destabilize relations with other nations, the Philippines should go after the available jewels the way China goes after Philippine resources.

Purposefully. Without hesitation or regret.

China need not be the only nation with a predatory strategy.