Philippines’ ‘assertive transparency’ strategy is causing them to miss out economically

The Philippines is going all in with the United States and bracing itself against lost Chinese largesse. President Ferdinand Marcos Jnr will fly to Washington next month to attend the US-Japan-Philippines trilateral leaders’ summit. It will be his fourth visit to the US since taking office as president less than two years ago.

South China Sea: Philippines must softly manage disputes or miss out economically

Previously:

PH: Compared To China, US Trade, Investment Offers Laughable + More

SCS: The Office of Naval Research funded Stanford’s GKC

Is the Philippines becoming a US ‘proxy’ against Beijing in the South China Sea?

Is the Philippines becoming a US ‘proxy’ against Beijing in the South China Sea?

‘The ants that get trampled on’

Not everyone agrees with drawing closer to the US, however, and they warn about the Philippines turning into a “proxy” for American interests. The president’s own sister Imee, a senator, told ANC Digital earlier this month that “China will always be our neighbour, we have no fight with them, let’s not get dragged into a fight that’s not our own.”

Anna Rosario Malindog-Uy, director of the pro-China Asian Century Philippines Strategic Studies Institute, wrote in the Manila Times on February 10 that “agreements such as the EDCA, the VFA and the Mutual Defence Treaty have not only cemented the US military presence and influence in the Philippines but also, most importantly, exemplified the Philippines’ dependence on the US in the military and defence sector.”

Teresita Ang See, former president of the Philippine Association for Chinese Studies and currently part of its advisory council, told This Week in Asia: “Filipinos in general condemn China’s action. But many also understand that China’s assertiveness is in response to US, Japanese and Australian provocations and increasing military presence in the Philippines.”

She warned that “we are fighting a proxy war between the US and China and in the end we will be the ants that get trampled upon”.

H/T: Johnsonwkchoi

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Responding to the Catholic Bishops

Philippines counts the cost of tough South China Sea stance against Beijing

Philippines counts the cost of tough South China Sea stance against Beijing

Philippines counts the cost of tough South China Sea stance against Beijing

The Philippines has become a laboratory in responding to Beijing on the South China Sea row, taking the most risk but showing inconsistency and underwhelming results thus far. Its predicament explains why other Southeast Asian claimant states remain unlikely to follow its lead. The tepid reaction to Manila’s pitch for an Asean claimants-only Code of Conduct is indicative.

As had happened in the past, lost economic opportunities and further erosion of Manila’s position in the flashpoint, relative to other disputants, may lead to a possible policy reversal in handling the maritime tiff come the 2028 presidential election.

Last year, the Philippines began to expose China’s illicit actions in the disputed waters. It inserted reporters in routine patrols and resupply sorties to document interference by the Chinese coastguard and maritime militia ships. The idea is to rally local and international support and impose reputational costs on Beijing. [Project Myoushu AKA Transparency Initiative]

This approach made strides in rousing public backing for Manila’s defence build-up, a stronger alliance with the United States, and a tougher stance against China. However, it also contributed to polarising domestic politics, affecting people-to-people ties and diminishing Chinese economic interest in the Philippines. Meanwhile, Beijing remains unmoved, weathering reputational costs and continuing to wield a capacity for escalation in the South China Sea.

During Xi’s visit to Hanoi last December, both sides vowed to upgrade the Kunming-Haiphong rail line. In contrast, Chinese funding for three rail projects discussed during the previous Duterte government is already dead in the water. China is unlikely to become a strong partner for President Ferdinand Marcos Jnr’s Build Better More infrastructure programme.

Losses in the tourism sector have also become evident. In 2019, before the pandemic, China was the Philippines’ fastest-growing tourist market, with more than 1.7 million arrivals, or a 21.1 per cent market share, just behind South Korea. Last year, as countries in Asia raced to benefit from the return of Chinese tourists, the Philippines only welcomed over 260,000 tourists from China, with the market share shrinking to just 4.84 per cent.

Ironically, for all the talk about Duterte’s China policy as appeasement, it was under his watch that the Philippines made the biggest upgrade in infrastructure in the Spratlys since the 1970s. He also invested in modernising the country’s military, procuring modern frigates from South Korea, multirole response vessels from Japan and cruise missiles from India. All these happened while relations with China remained stable.

Another irony is that while Manila celebrates every resupply mission to the Second Thomas Shoal that successfully eluded the Chinese blockade, Vietnam is busy doing substantial reclamation on its Spratly outposts and gearing for a potential second airfield, with reportedly little interference from Beijing. [Bueller?]

These should offer plenty of insights as the strategy of the Philippines over the maritime squabble evolves.

Pakistan’s misery continues

Pakistan has a general election today. It will decide on the next government of the world’s fifth-most populous nation and the governments of its four provinces — Punjab, Singh, Balochistan and Khyber Pakhtunkhwa. Around 128 million people can vote to pick 266 representatives to form the 16th parliament in a first-past-the-post system. They will also vote to elect the legislatures of the country’s four provinces.

Pakistan’s misery continues

North Korea is sitting on trillions of dollars of untapped wealth

I’m sure that US corporations would love to exploit their minerals, too.

North Korea is sitting on trillions of dollars of untapped wealth

Few think of North Korea as being a prosperous nation. But it is rich in one regard: mineral resources.

But however much North Korea could extract from other nations that way, the result would pale in comparison to the value of its largely untapped underground resources.

Below the nation’s mostly mountainous surface are vast mineral reserves, including iron, gold, magnesite, zinc, copper, limestone, molybdenum, graphite, and more—all told about 200 kinds of minerals. Also present are large amounts of rare earth metals, which factories in nearby countries need to make smartphones and other high-tech products.

Estimates as to the value of the nation’s mineral resources have varied greatly over the years, made difficult by secrecy and lack of access. North Korea itself has made what are likely exaggerated claims about them. According to one estimate from a South Korean state-owned mining company, they’re worth over $6 trillion. Another from a South Korean research institute puts the amount closer to $10 trillion.

North Korea has prioritized its mining sector since the 1970s (pdf, p. 31). But while mining production increased until about 1990—iron ore production peaked in 1985—after that it started to decline. A count in 2012 put the number of mines in the country at about 700 (pdf, p. 2). Many, though, have been poorly run and are in a state of neglect. The nation lacks the equipment, expertise, and even basic infrastructure to properly tap into the jackpot that waits in the ground.

It doesn’t help that private mining is illegal in communist North Korea, as are private enterprises in general (at least technically). Or that the ruling regime, now led by third-generation dictator Kim Jong-un, has been known to, seemingly on a whim, kick out foreign mining companies it’s allowed in, or suddenly change the terms of agreements.

Despite all this, the nation is so blessed with underground resources that mining makes up roughly 14% of the economy.

A “cash cow”

China is the sector’s main customer. Last September, South Korea’s state-run Korea Development Institute said that the mineral trade between North Korea and China remains a “cash cow” for Pyongyang despite UN sanctions, and that it accounted for 54% (paywall) of the North’s total trade volume to China in the first half of 2016. In 2015 China imported $73 million in iron ore from North Korea, and $680,000 worth of zinc in the first quarter of this year.

But South Korea has its own plans for the mineral resources. It sees them as a way to help pay for reunification (should it finally come to pass), which is expected to take decades and cost hundreds of billionsor even trillions of dollars. (Germany knows a few things about that.) Overhauling the North’s decrepit infrastructure, including the aging railway line, will be part of the enormous bill.

In May, South Korea’s Ministry of Land, Infrastructure and Transport invited companies to submit bids on possible infrastructure projects in North Korea, especially ones regarding the mining sector. It argued that (paywall) the underground resources could “cover the expense of repairing the North’s poor infrastructure.”

Ag groups concerned at Mexican rail closures

Source

Agriculture groups and elected officials are sounding the alarm after the Department of Homeland Security, without warning, closed two of the six key rail crossings into Mexico on Dec. 17, holding up millions of tons of agricultural products to the United States’ leading ag export destination.

Ag groups concerned at Mexican rail closures

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Statement from CBP on Suspension of Rail Operations in Eagle Pass and El Paso, Texas

“CBP is continuing to surge all available resources to safely process migrants in response to increased levels of migrant encounters at the Southwest Border, fueled by smugglers peddling disinformation to prey on vulnerable individuals. After observing a recent resurgence of smuggling organizations moving migrants through Mexico via freight trains, CBP is taking additional actions to surge personnel and address this concerning development, including in partnership with Mexican authorities.

In first speech, Argentina’s Javier Milei warns nation of painful economic shock

BUENOS AIRES, Argentina — It wasn’t the most uplifting of inaugural addresses. Rather, Argentina’s newly empowered President Javier Milei presented figures to lay bare the scope of the nation’s economic “emergency,” and sought to prepare the public for a shock adjustment with drastic public spending cuts.

In first speech, Argentina’s Javier Milei warns nation of painful economic shock

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With soy and lithium trade in the balance, Argentina’s Milei has a China conundrum

Argentina election 2023: what you need to know

On the strategic relationship between Venezuela and China

During a state visit to the People’s Republic of China in September 2023, Venezuelan president, Nicolas Maduro met president Xi Jinping and both agreed to strengthen the relationship of their countries by establishing seven sub commissions to elevate it to the level of ‘all-weather strategic partnership’. This is the culmination of a relationship that began with president Hugo Chavez’s first visit to Beijing in 1999, the very first year of his presidency.

On the strategic relationship between Venezuela and China