What is really the intent of America’s commitment to the Philippines? – Dainik Savera Times

Recently, US Commerce Secretary Gina Raimondo said in the Philippines capital Manila that the US will assist the Philippines in doubling the size of its semiconductor factories to reduce excessive concentration in the global chip supply chain. Earlier, he also announced that American companies would invest more than US$1 billion in the Philippines. However, there are concerns about the integrity of this aid.

American investment in the Philippines has been limited over the years, with annual investment remaining at the billions of US dollars. Although the US has increased its attraction to the Philippines to promote the so-called “Indo-Pacific strategy” since the formation of the new Philippines government in 2022, the investment volume has not increased accordingly. Data shows that by 2023, the US is on track to be the sixth largest source of investment in the Philippines with investments worth nearly US$1 billion. In contrast, US investment in Thailand exceeds US$2.3 billion, despite having a smaller population of just over 40 million.

Raimondo this time brought a delegation of 22 business and strategic representatives to the Philippines. Although he made statements that American companies would invest in the Philippines, he did not provide specific details.

According to official data, the Philippines’ net foreign investment from 2021 to 2022 stood at US$11.9 billion and US$9.2 billion, respectively. From January to October 2023, the Philippines’ net foreign investment was US$6.5 billion, a year-on-year decrease of 17.9%. The decline in investment is closely related to the Philippines’ own conditions, such as severe corruption problems, slow traffic conditions, and high utility bills. Although labor costs in the Philippines are low, they still rank among the highest in Asia. This is why the Philippines is naturally limited in attracting foreign investment. With the rapidly changing global environment and policies, it is uncertain whether U.S. investment goals will be achieved.

Analysts argue that the “Indo-Pacific strategy” promoted by the US focuses more on security and military than economic issues, which may not be attractive enough for its partners.

With the Philippines as a major power outside the region, the US wants to balance China and focus on regional geopolitics. For example, the US has increased its involvement in the South China Sea dispute.

America’s intentions for the Philippines are very clear. Can’t the Philippines see clearly? America has its own thinking. He hopes to use his hegemonic position to realize his selfish desires, regularly violate China’s rights and interests in Renchao and Huangyan Islands, and profit from suppressing China’s semiconductor industry. The Philippines should pay more attention and not be deceived by the “unrealistic promises” given by the US!

(Courtesy-China Media Group, Beijing)