China's Charm Offensive

8/13/2019 China's Charm Offensive

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De La Salle-College of Saint BenildeSchool of Multidisciplinary Studies

Consular and Diplomatic Affairs Program

CHINAS CHARM OFFENSIVE:Its Negative Effects and the Philippine Dilea

In partial fulfillment of the requirements for the Course Su!ect"Philippine International #rade $elations

Balingit% Arlene

Cepriano% &essa &oyChan% 'ar(ee

)ernando% &ohn Allen&o(enir% Christelle*apata% Ma+ ,lla

!S!"

April % ./10

Ms+ Lorelie AstreraC#$%se S$&'ect P%#fess#%


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!ist #f Ac%#n(s

AC)A-AS,A 2 China )rame3or4 Agreement

AC)$-American Council of )oreign $elations

AC#I5A-AS,A 2 China #rade in 5oods AgreementADB 2 Asian De(elopment Ban4AS,A- Association of South ,ast Asian ation

B6#-Build-6perate-#ransfer

CCM-China7s Charm 6ffensi(e

C,C- Comprehensi(e ,conomic Cooperation

CI- Confucius Institute

CMD-China7s Monroe Doctrine

CMI-China ational Machinery Industry Corp

CPD$-China7s Peaceful De(elopment $oad

CP$-China7s Peaceful $ise

D8,)-Da(os-style 8orld ,conomic )orum

,'P-,arly 'ar(est Programme

,ICA-,9port-Import Credit Agency

,:-,uropean :nion

)A-)rame3or4 Agreement)#A- )ree #rade Agreement

5A#S- 5eneral Agreement on #rade in Ser(ice

5DP- 5ross De(elopment Product

'SL-'ighly Sensiti(e ListA)#A- orth America )ree #rade Agreement

PC-Peace Corps

P$C- People7s $epulic of China

PSA-Pacific Strategies and Assesments

PSC-Polituro Standing Committee

SC- Security Council

SCS- South China Sea

#IS- #rade in Ser(ice

:- :nited ations

8#6-8orld #rade 6rgani;ation*#,-*hong


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Table of Contents

List of Acronyms+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++.List of #ale and )igures+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++=I+ Introduction++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++>

II+ $e(ie3 of $elated Literature++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++?Soft Po3er in China7s )oreign Policy+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++?By &ustyna S;c;udli4-#atar% ./11+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++?Balancing 5amits in the #3enty-)irst Century% Philippine )oreign Policy" 5ains andPossile Demise@+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++?By $enato De Castro% ./11 ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++?China-AS,A $elations in .//." Chronology of ,(ents+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++By Cheun 'oe o3% .//.+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++China-AS,A $elations% 6ctoer .//. to &une .//0" Chronology of ,(ents++++++++++++++++++++++++++By Cheun 'oe o3% .//0+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++China-AS,A $elations% 6ctoer .//0 to March .//" Chronology of ,(ents+++++++++++++++++++++++

By Cheun 'oe o3% .//+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++6n Studies of the 'istory of the Philippines in China+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++By Maohong Bao% ./1.+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++By Sheng Ding+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++1/By ,llen '+ Palanca+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++1/

III+ Prolem Statement+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++11I+ 6!ecti(es of the Study++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++11+ #heoreticalConceptual )rame3or4++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++1.I+ $esearch Methodology++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++1.#his research paper requires gathering rele(ant data from se(eral oo4s% !ournals% electronicoo4s% and periodicals+ #his pro!ect 3ill use oth quantitati(e and qualitati(e data+ Datacollection 3ill consist of citing information% recommendation% conclusion% figures and analysisfrom se(eral authors and organi;ations that is concerned of the topic+ ++++++++++++++++++++++++++++++++++++++++1.II+ Scopes and Limitations++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++1.

China7s )oreign Policy++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++1AS,A - C'IA $elationship+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++1>,ffects to the Philippines+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++1>C'IA7S C'A$M 6)),SI,% C6C,SSI6A$ L6AS AD #', ISS:, 6)D,P,D,C,+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++1>Concessionary Loans+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++1AS,A-C'IA )#A++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++./Agreement on #rade in 5oods+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++./Agreement on #rade in Ser(ices++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++.1In(estment Agreement ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++.0

P$6BL,MS 8I#'I #', AS,A-C'IA )#A+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++.8hat could happen to AS,A@++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++.C'IA7S C'A$M 6)),SI,% C6C,SSI6A$ L6AS AD #', ISS:, 6)D,P,D,C,+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++.>C'IA7S C'A$M 6)),SI, AD MII5 I #', P'ILIPPI,S+++++++++++++++++++++++++++++++++.EC'IA7S F56I5 6:#G P6LIC AD I#S IMPLICI# FMISSI6G+++++++++++++++++++++++++++++++++++++01


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P6LI#ICAL 56ALS 6) #', C6):CI:S IS#I#:#,+++++++++++++++++++++++++++++++++++++++++++++++++++++++++0.A,< I+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++0=


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!ist #f )a&le and Fig$%es

)igure 1" AS,A-China #rade is $ising $apidlyHHHHHHHHHHHHHHHHHHH

1

)igure ." Increasing $ate of AS,A isitors toChinaHHHHHHHHHHHHHHHH+1E

)igure 0" #op )i(e Countries in the China-AS,A)#AHHHHHHHHHHHHHHH++./

#ale 1" List of F$egisteredG Chinese Mining Companies in thePhilippinesHHHHHHH+++.>-.?


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I* Int%#d$cti#n

#rade relations et3een the $epulic of the Philippines and the People7s $epulic of

China had een estalished se(eral centuries ago since the latter had opened its trading sector tothe 3orld eginning 1/thcentury A+D+ #he earliest history of trading et3een the Philippines andChina dates ac4 to 1//0 A+D+ Dacalanio% ./1.J 3hich e(idently sho3s that the ethnic Chineseplayed a decisi(e role in oosting Philippine economic gro3th and social de(elopment thatattended to the interest and enefit of the ma!ority+ During the Spanish coloni;ation of thePhilippines% many of the ethnic Chinese decided to permanently reside in the country in order forthem to trade their goods and ser(ices easily+ During the Spanish reign% Chinese products andlaor 3ere considered to e (ital for the colony7s progress+ 'o3e(er% their increasing populationmade the in(aders 3ary and e threatened+ As a result% in 1>/0% conquerors massacred thousandsof them+ #hrough the opening of the ports on oth countries% the transfer and e9change ofproducts ecame simple+ Certain e9amples of e9change in goods 3ere seen in trade situations

3herein the Chinese e9changed sil4 and porcelain for the hemp cloth and pearls of the )ilipinos+As it appears in se(eral 3ritings of former Chinese settlers and traders in the country% the mostimportant trade-center is Mindoro or Ma-i ecause of its large deposits of gold Ang See% 1EE?J+Becoming important memers of a certain state7s social community 3as also achie(ed y theChinese population+ #his notion of 3ide acceptance came prior to the massi(e Chinese diasporaduring the 1Ethcentury shortly after the fall of the King ,mpire+ #hroughout history% the massi(eemigration of the Chinese population 3as caused y 3ars and star(ation in the Mainland ChinaBarme% ./1/J+ As their population migrated% they are trying to car(e out their culturalcommunity in each respecti(e host states through the estalishment of different Chinato3ns+ #helatter represents their cultural% social% and economic di(ersity 3hich they are trying to integrate3ith the locals such as those in the Philippines+ ,stalished in the 1=E/s% it is said that the oldest

Chinato3n in the 3orld is Binondo in Manila Buaron% ./1/J+ As a result% large numers ofindi(iduals 3ith Chinese lood had een d3elling not only the said community% ut also mostparts of the 3orld+

China is considered the 3orld7s most populous nation and the fastest gro3ing economy+#he $ise of China through its economic% political% military and its soft po3er is said to e the one3ho 3ill determine the .1st centurys de(elopment Arsenault% .//?J+ As China7s economygro3s% so its FcharmG and the increasing China7s )oreign Policy that has achie(e in attaininggreat po3er in the International Community that is according to &oseph S+ ye% &r+% 3ho arguedthat the future of International politics 3ill not rest on a country7s military or economic aspects%ut rather on the attracti(eness of a country+ Charm 6ffensi(e is also 4no3n as soft po3er3herein it is to attain the desired results through appeal% seduction% and attraction+ It is neither

persuasion% influence% sanction% nor a payment for proper eha(ior S;c;udli4-#atar% ./11J+ 6nthe other hand% in order to fully e9ercise its charm offensi(e% China tends to integrate in largegroups of countries such as the Association of Southeast Asian ations AS,AJ+ In the past%China pro(ided military assistance on one hand and on the other% fought a 3ar 3ith once allyietnam in 1E?E+ o3% China encourages increased cooperation in trade and in resol(ing orderdisputes and has ecome a 4ey outside memer of AS,A and AP,C+ Con(ersely% upon theapplication of its charm offensi(e% China is percei(ed to e utili;ing the :S7 Monroe Doctrine in


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e9panding its territorial demarcation through the seas+ #hus% one can see other Asian countriesare implicitly losing their authority o(er their o3n oundaries Acharya% ./11J+

II* Revie+ #f Related !ite%at$%e

S#ft P#+e% in Chinas F#%eign P#lic(

,( -$st(na S.c.$dli/0)ata%1 2344

China7s soft po3er ecame the topic of S;c;udli4-#atar7s article+ #he author identifiedthree tools that China uses to attain its goals through soft po3er+ #his can also identified as thesources from 3hich soft po3er is deri(ed+ #he first tool is culture+ China7s use of cultural andeducational diplomacy has t3o strategiesFin(iting inG qing !inlaiJ and of Fgoing outG ;ouchuquJ+ #he Fin(iting inG strategy consists of steps that China create to attract foreigners in theircountry+ Some e9amples are the enhancement of China7s higher education system to attractforeign students% scholarship programs and promotion of tourism+ 6n the other hand% the FgoingoutG refers to strategies that targets eneficiaries outside China+ Its o!ecti(e is to ma4e people4no3 more aout China in a positi(e note+ 6ne e9ample is the estalishment of ConfucianInstitutes 3hich promotes the teaching of Chinese aroad+ Another 3ould e the .// Bei!ing6lympics 3hich ga(e chance to China to promote its cultural achie(ements and the country7sstrength not only in sports ut its financial capaility to host the super and magnificentquadrennial sports e(ent+ #he second source of China7s soft po3er 3ould e its foreign policy+#his includes (isits official and unofficialJ% informal summits% sending of highly-professionaldiplomats in (arious parts of the 3orld% in(ol(ement in different international organi;ations ande(en in : Peace4eeping missions+ #he third source is its economic sources+ China has eenemploying economic diplomacy in many regions of the 3orld% especially in Africa% LatinAmerican and South ,ast Asia+ Also% China is also acti(e in gi(ing aids to different countries% as

3ell as% loans and in(estment pro!ects+ )urthermore% S;c;udli4-#atar7s paper focused on threema!or regions in the 3orld 3here China7s soft po3er are really e(ident+ In the Southeast Asia%3here China 3ants to e 4no3n itself as region7s FleaderG% the country has three methods inorder to get the countries7 good3ill+ #hese are the common Asian roots% similar historicale9periences and mutual ad(antages 3in-3inJ+ China has also estalished a free trade ;one in thearea 3ith si9 AS,A countries Brunei% Indonesia% Malaysia% the Philippines% Singapore and#hailandJ+ Although% China7s po3er% specifically the soft one% has een gro3ing in se(eralregions of the 3orld% the article did not deny the fact that there are side-effects of the China7sin(ol(ement in these regions+ )irst is en(ironmental degradation% 3hich spans from o(er-intensi(e mining to pollution to other negati(e e9ternalities+ Second is the gro3ing numers ofChinese Diasporas 3hich as the nati(es of the different countries accuses them that they transfer

Fprofit to China+G #he author challenges the different international organi;ations such as the,uropean :nion to act in order to alance the gro3ing influence of Chinathat is Fto adopt anopen attitudeG to3ards China% Feliminate stereotype thin4ingG and to Fde(elop its o3n soft po3erstrategy competiti(e to China7s+G

,alancing 5a&its in the )+ent(0Fi%st Cent$%(1 Philippine F#%eign P#lic(: 5ains and

P#ssi&le Deise6

,( Renat# De Cast%#1 2344


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a starting point for the Chinese scholars studying the Philippines ha(ing its contents d3elling onnationalist historiography+ During 1EE% after the estalishment of the People7s $epulic ofChina% Chairman Mao *edong encouraged the Chinese to learn the history of foreign countriesincluding that of the Philippines+ #he latter demanded that e(ery country must ha(e a historyoo4 3ritten y a Chinese or translated into Chinese+ 'o3e(er% due to the period of isolationism

and Cultural $e(olution in China 1EE-1E?>J% Chinese scholars could not e9ecute this importanttas4+ ,specially that China formerly does not ha(e any diplomatic relations 3ith the Philippines%resulting into the lac4 of access in academic e9change+ #he estalishment of the Sino-Philippinerelations in 1E?= resulted into some oo4s to e translated or 3ritten to satisfy the readingdemand of go(ernment leaders and diplomatic staff% thus% this 3as the first 3a(e of studies of thehistory of the Philippines in China+ #he second 3a(e of historiography of the Philippines inChina occurred from 1E? until the turn of the century+ During this period% China egan topractice an open door policy+ 6(erseas Chinese in the Philippines (isited their ancestralhometo3ns not only to in(est ut also to conduct academic e9change+ In order to satisfy the needfor historical understanding% some oo4s on the history of the Philippines and the history ofSino-Philippine relations 3ere pulished+ )rom an array of different Chinese scholars dre3 ne3

understandings of the history of Sino-Philippine trade% cultural e9change% and some aspects ofthe social% political% and economic systems of the Philippines% including the history of the)ilipinos7 struggle against Spanish coloni;ers+ #he second 3a(e continued the emphasis on theanti-colonial struggle% 3hile ma4ing ne3 inroads into the e9ploration of economic history+ :nderthe frame3or4 of Sino-Philippine relations% economic history ecame the main topic for Chinesehistorians del(ing into Philippine history+ #he third 3a(e is eing pushed mostly y youngscholars 3ho earned their doctorates in the t3enty-first century+ #he pulished oo4s e9ecutedthe increasing plurality and comple9ity of Philippine historical studies in China 3hether inperspecti(e% methodology% or theme+ In a departure from the general historical 3riting prior to.///% recent historical studies of the Philippines in China are ecoming thematic and moredetailed+ 6n the other hand% despite the emergence of teaching Philippine historiography inChina% these e(ents encountered challenges+ )irst% Chinese historical studies of the Philippinesha(e een strongly influenced y China7s o3n internal political culture and circumstances+Second% Sino-Philippine relations and o(erseas Chinese history remain among the primary fociof historical studies of the Philippines in China+ #hird% Chinese historians ha(e had a long historyof seeing Philippine history against the ac4ground of Southeast Asian history+ )ourth% historicalstudies in the field of Southeast Asian studies ha(e een on the decline in China+ )ifth% Chinesehistorians of the Philippines ha(e relied hea(ily on historical materials in ,nglish found in Chinaand also those found in :S archi(es+

#he author enumerated his suggestions regarding the matter and articulated thefollo3ing" 'istorical studies of the Philippines need to return to the mainstream of area studies inChina+ #here must more time in training professional historians+ e3 doctoral graduates inPhilippine history should e guaranteed positions in uni(ersity or go(ernment to continue theirresearch+ Chinese historians of the Philippines should acti(ely see4 to set up !oint programs 3iththeir Philippine colleagues+ Chinese historians of the Philippines could contriute their o3nperspecti(e as outsiders and help pro(ide access to (aluale Chinese historical material on thePhilippines hitherto un4no3n% unused% and una(ailale to other scholars+ )inally% Chinesehistorical studies of the Philippines should e increasingly done on four integrated le(els+ #hefirst is local% the second is national% the third is regional% and the fourth is gloal+


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)# ,uild a Harmonious World: Chinas Soft Power Wielding in the Global South: ASummary

,( Sheng Ding

Since it 3as officially presented y the Chinese President at the :nited ations summitin .//=% the term Fharmonious 3orldG has ecome one of the most popular le9icons for tal4ingaout Bei!ing7s ideal of international order in the age of China7s rise+ Classical internationalrelations theorists elie(e that% in international politics% the quality of diplomacythe sustanceand style of foreign policyis not only the most important element of national po3er% ut alsoan immeasurale and unstale element+ Since the end of the Cold 8ar% China7s rise has ecomea gloal phenomenon+ Although there are some disputes aout the speed and e9tent of China7srise% much attention has een paid to the question of 3hether China7s gro3ing po3er portends athreat or ho3 China 3ill 3ield its national po3er+ Many China oser(ers point to China7sterritorial and demographic si;e% its fast-gro3ing economy% and its continuously rising nationaldefense udget as e(idences that China may ecome a re(isionist po3er capale of dominating

the )ar ,ast and challenging American interests gloally+ :nder this ac4drop% Bei!ing mustcarefully design its foreign strategy in order to estalish a fa(orite national image i+e+% a peacefuland responsile great po3erJ and create a friendly international en(ironment for its ascendancy+

Both ideas of Fharmonious 3orldG and FChinese soft po3erG can find their e(identimprints from China7s ancient ideologies 3hich ha(e emedded in Chinese culture for hundredsof years+ #his study also finds Bei!ing has implemented the follo3ing specific soft po3er-asedforeign policies to3ard three targeted regions" 1J to uild a harmonious en(ironment 3ith itsneighoring countries for common de(elopmentO .J to re-define its Fold rotherhoodG 3ithAfrican countriesO and 0J to Fe9hiitG its o3n political (alues in Latin America 3hereundemocratic or semi-authoritarian regimes remain common+

Chinas 9)O Ent%(: Effects #n its Ec#n#( and Iplicati#ns f#% the Philippines: ASummary

,( Ellen H* Palanca

China ecame the 10rd memer of the 8orld #rade 6rgani;ation 8#6J 6n Decemer11% .//1+ #he Chinese economy has gro3n at an a(erage annual rate of close to ten percent since1E?E+ De(eloped countries are the largest importers of Chinas lo33age% laor-intensi(emanufactured products+ In turn% Chinas imports of capital-% technology- and 4no3ledge-intensi(e goods necessary for its economic de(elopment as 3ell as those of high qualityconsumer goods% 3hich are increasing (ery rapidly ecause of rising population income% aremostly from the de(eloped countries+ #he de(eloping countries% on the other hand% face

competition from China for mar4ets of similar laor-intensi(e manufactured e9ports and foreigndirect in(estments )DIsJ+ Becoming a memer of the 8#6 means that China has to open itsmar4et 3ider% oth in terms of regions and industries+ #he greater lierali;ation resulting from its8#6 entry is e9pected to ha(e a positi(e effect on its economic gro3th% 3hich 3ill furthere9pand its mar4et+ It is e(ident that Chinas 8#6 accession presents opportunities in the area ofproduct and mar4et niches for de(eloping countries li4e the Philippines+ 'o3e(er% Chinasmemership in this 3orld trade system also means that its competiti(eness% 3hich has alreadyeen a source of challenge for manufacturers all o(er the 3orld in the past decade% 3ill e further


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strengthened+ #he Philippines 3ill face the negati(e impact of sharper competition from China inthe formers domestic mar4et% in Chinas mar4et% and also in third mar4ets li4e the :S and&apans+ Another much-feared negati(e impact for the Philippines is Chinas attraction for foreigndirect in(estments% 3hich ha(e spiraled ecause of Chinas accession commitment to greatercapital lierali;ation and its gro3ing gigantic mar4et+ 'o3e(er% the effect of such capital inflo3

to China may not necessarily result in the hollo3ing out of economic acti(ities in the de(elopingcountries+

Impacts on the Philippines are the follo3ing" the Philippines can e9pect to gain mar4etopportunities in oth merchandise and ser(ice trade+ 8ith lierali;ation of the ser(ice trade%many ser(ice industries ha(e ecome open for access y foreign in(estors+ As China is e9pectedto aide y the rules of 8#6% Philippine in(estments in China and usiness transactions 3ith theChinese can no3 en!oy etter protection than eforeO the tariff rate for carrageenan and othersea3eed products 3ill e reduced y ./ to 1/ percent in three years time+ )or the Philippines%one important area of opportunities in ser(ice trade is professional ser(ices+ Professionalscomprise a good part of Philippine laor e9ports+ At present% there are already many )ilipino

usiness professionals such as managers and accountants 3or4ing for multinational corporationsand !oint (entures in China+ 8ith such commitments to the 8#6% Philippine e9porters%professionals and in(estors 3ill en!oy etter protection of their usinesses and !os in China+Chinas economic gro3th 3ill also increase its capacity for in(estments-oth domestic andforeign+ )DI outflo3 from China is e9pected to increase not only ecause of the predictedeconomic gro3th% 3hich 3ill mean more income and foreign reser(es for in(estments% ut alsoecause of the lierali;ation of capital outflo3 its accession to the 8#6 implies+

III* P%#&le Stateent

$esti#n" Are there negati(e effects of Chinas Charm offensi(e that can affect the Philippines@

It is true that se(eral countries li4e the Philippines enefit from Chinas Charm 6ffensi(eut it has negati(e effects that can affect different sectors in the Philippines+

IV* O&'ectives #f the St$d(

#his paper 3ill try to define Charm 6ffensi(e% as 3ell as% to discuss the trade relations ofPhilippines and China from the past up to the recent data and statistics+ #his paper7s o!ecti(esare to discuss the AS,A-China )ree #rade Agreement% to tal4 aout some prolems of theAS,A-China )ree #rade Agreement% to identify the different enefits of China7s Charm6ffensi(e to the Philippines and also to some countries from the AS,A and other parts of the3orld+ )urthermore% to enumerate and e9plain the negati(e effects of China7s Charm 6ffensi(e3ith respect to the follo3ing areas such as economic and trade% en(ironment% political and socio-cultural 3ill also e the main focus of this research 3or4+


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V* )he#%etical;C#ncept$al F%ae+#%/

In e9amining the case of China7s utili;ation of its charm offensi(e% this paper employedthe #heory of Soft Po3er and the #heory of $ealism+ #he theory of Soft Po3er 3as firstintroduced y &oseph ye in his oo4 FBound to Lead" #he Changing ature of American

Po3erG pulished in 1EE/+ &oseph S+ ye defined po3er as Fthe aility to change the eha(ior ofothers to achie(e the desired result y such means as re3ard% punishment% or attraction+G Itconstitutes the po3er to appeal% seduce and attract other countries+ It is not aout persuasion%influencing or sanctioning other countries ut Fs4illfully shaping their preferences+G #here arethree sources of soft po3erculture% (alues and foreign policies+ #he culture mainly refers to theelements in one country7s culture that ma4es it appealing for others+ alues 3hich can includepolitical eliefs and (alues that are sho3n either through internal policies or e9ternal+ Lastly%foreign policies are also a source of soft po3er as tac4led in the 3hole article+ Another sourcethat many scholars deate upon is the economic policies such as the official de(elopmentassistance 6DAJ and other humanitarian aid+ #he use of diplomacy and a nation7s standing ininternational odies enale it to uild alliances Bohorque;% .//=J+ 6n the other hand% the theory

of $ealism is one of the asic theories in international relations and it argues that e(ents in the3orld follo3 one system+ It is 4no3n as the 'oesian system 3hich 3as proposed y one of themain proponents of the realist (ie3% #homas 'oes+ According to the 'oesian system%e(eryone must e (ie3ed as a threat and the only 3ay to sur(i(e is to gain more po3er than yourri(als+ It argues that the international system is anarchical 3hich means that there is no 3orldgo(ernment to uniformly regulate all the international actors+ Another argument centers on theidea that states are the central or principal actor in the international system and this notion is also4no3n as the principle of Statism+ Currently% China is percei(ed to e using the principle ofBalance of Po3er 3hich refers to the tendency of an independent state to alance its economicand military pro3ess in relation to other countries 3ithin its o3n regional periphery+ #he finalargument of the theory focuses on the idea that cooperation in the international system is difficult

and unli4ely Amersagen% ./11J+

VI* Resea%ch Meth#d#l#g(

#his research paper requires gathering rele(ant data from se(eral oo4s% !ournals%electronic oo4s% and periodicals+ #his pro!ect 3ill use oth quantitati(e and qualitati(e data+Data collection 3ill consist of citing information% recommendation% conclusion% figures andanalysis from se(eral authors and organi;ations that is concerned of the topic+

VII* Sc#pes and !iitati#ns

)ocusing on the trade relations et3een the People7s $epulic of China and the $epulicof the Philippines% the scope of this research paper co(ers the historical ac4ground of tradepatterns and eha(ior of the t3o countries upon each other% as 3ell as the e(olution of the effectsof China7s rising economic po3er o(er the Asian region particularly on the Philippines+ By usingthe historical approach in scrutini;ing the gi(en issue% this paper can present an array of specificsituations that mainly in(ol(e China and the Philippines% accompanied 3ith sets of statistical data


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and information% as 3ell as research !ournals and inter(ie3s conducted y the researchers+ #hispaper 3ill also ta4e a loo4 at the status of different countries regarding the effects of China7sCharm 6ffensi(e to their countries+


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VIII* Res$lts and Disc$ssi#n

CHINAS SOF) PO9ER IN FOREI5N PO!IC7: PEACEF

5OOD NEI5H,OR!INESS

China is considered the 3orld7s most populous nation and the fastest gro3ing economy+#he rise of China through its economic% political% military and its soft po3er is said to e the one3ho 3ill determine the .1st centurys de(elopment+ Beginning in the 1E/7s% China7s 5DP haseen gro3ing from to 1/ percent a year for o(er t3o decades+ Due to the tremendous effort ofChina7s go(ernment% it 3as ale to attain on lifting millions of its citi;en from po(erty andenriching the country through ma4ing !os for its citi;encausing the thousands ofcountryside7s !oless citi;en to mo(e out of the from their homeland and mo(e in the city7s fastgro3ing industrial sector+ )urthermore% 3ith China7s economic gro3th% it 3as ale to uild ne3

factories% s4yscrapers and institutions to facilitate trade and usiness in the country Arsenault.//?J+

Chinas F#%eign P#lic(

China as 3e 4no3 has a great amount of soft po3er ut if they 3ould e ale to use it inits foreign policy it 3ill only e useless as stated y &oseph ye+ According to iall )erguson acountry not fully utili;ing its soft po3er 3ill !ust e considered Fsoft+G China has put greatrecognition of soft po3er in formulating their foreign policy+ #he Chinese go(ernment hascategori;ed moderni;ation as a Fde(elopment path to a peaceful rise+G Accordingly% soft po3er issuordinated to the foreign policy aims+ )irst is to continue reforms and economic de(elopment

through political reforms+ Second is to search aroad for ra3 materials ase and sales mar4et+#hird is to ensure security in the region y coordinating to (ariety of organi;ations%including la3 enforcement% military% paramilitary% go(ernmental% and intelligence agencies3hose aim is to protect China7s national security+ China also pursues the one-China principle toestalish diplomatic relations 3ith the states that still maintain official relations 3ith #ai3an+Last is to 3in the de(eloping states7 good3ill% so that they support China in the :+ on issuesconcerning human rights% the isolation of #ai3an% or on loc4ing &apan7s permanent memershipin the : Security Council+ A Chinese foreign policy cannot ris4 China7s economic gro3th andinfluence in the international system ecause 3ithout these premises China 3ill not e ale toFcharmG the 3orld+ According to Arsenault% in the end% China 3ill ha(e Fcomprehensi(e nationalpo3erGa comination of international prestige% diplomacy% economic po3er% cultural

influence% and military force+According to Duan Bingren% the rise of China uses soft po3er so as not to ecome athreat to other states% especially those in the Pacific region and the :nited States+ ,conomically%it 3ants to incorporate itself in the gloali;ing 3orld% and see4s to e an acti(e player in this 4indof system+ Politically% China 3anted to and is acti(e to different international affairs such as!oining se(eral international organi;ations that 3ill estalish the notion of a Ffriendly and helpfulChina+G #herefore% the passi(e emergence of China is a segue for them to achie(e their goals3ithout utili;ing the idea of FhegemonyG% Fhot 3arG% Fcold 3arG% FChina threatG% Fdisintegration


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ASEAN 0 CHINA Relati#nship

#he AS,A Association of Southeast Asian ationsJ countries represent a group ofstates 3here Chinese influence is e9panding+ #he region7s culture and economies are greatlyintert3ined 3ith China7s% thus% prompting the latter to pursue friendly relation 3ith the former

and use soft po3er+ In the past% China pro(ided military assistance on one hand and on the other%fought a 3ar 3ith once ally ietnam in 1E?E+ o3% China encourages increased cooperation intrade and in resol(ing order disputes and has ecome a 4ey outside memer of AS,A andAP,C+ Most of China7s good3ill in the region stems from ho3 China handled the 1EE? Asianfinancial crisis+ #he fall in ,ast Asian currency caused massi(e stoc4 speculation and re(ersedthe Asian #iger7s economic gro3th+ China% ho3e(er% refused to de(alue its currency and sa(ingthe economy of the affected states+

'o3e(er% the increased rift et3een China and many AS,A states% mostly on territorialdisputes% egan a speculation from International $elations scholars to percei(e a FChineseMonroe Doctrine+G #he Monroe Doctrine 3as first enunciated in 1.0 y the =th president of the

:nited States &ames Monroe 3hich stated that Ffurther efforts y ,uropean countries to coloni;eland or interfere 3ith states in the Americas 3ould e (ie3ed as acts of aggression requiring:+S+G Scholars see parallels et3een that policy and China7s rise today+ #he 8est Philippine SeaSouth China SeaJ is China7s ac4yard and% li4e 1Eth century-America% China is a rising po3er+FChina7s commerce% and hence prosperity% depends (ery much on access to sea lanes through theIndian 6cean% the Malacca Straits and other areas o(er 3hich it has little control% and 3hich aredominated y :S na(al po3erG China Daily% ./10J+

Effects t# the Philippines

In April ./1. China and the Philippines ha(e een in a standoff regarding the

Scarorough $eef+ According to China Daily% the standoff has gone eyond from territorialclash to economic concerns such as those dealing 3ith fruit trade and tourism+ #he countrysuffered losses in fruit e9ports to China after some (arieties of fruit 3ere found carrying harmfulacteria and pests% therey causing massi(e delays in shipments% follo3ing tighter inspectionsfrom China+ #he tourism sector has also faced a ma!or setac4% 3ith Chinese nationals no3instructed to limit their (isits to the Philippines on account of safety reasons+ Sarina %./10J+

CHINAS CHARM OFFENSIVE1 CONCESSIONAR7 !OANS AND )HE ISS


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important foreign policy o!ecti(es" 1J e9panding its mar4et accessO .J gaining access tostrategic resources andO 0J assuring smaller states that it 3ill not undermine their economicinterests Medeiros% .//EJ+ #he ne9t year% oth parties signed the )rame3or4 Agreement onChina-AS,A Comprehensi(e ,conomic Cooperation 3hich heralded a China-AS,A freetrade ;one in ./1/+ In .//>% rapid trade gro3th 3as e(ident to the t3o parties as it escalated to

:SQ1>/+ illion% garnering .0+ per cent increase from the .//= trade le(el


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consolidation% and interpretation of aout 11%/// 4ilometers of .D seismic data in the location+#he first phase 3as completed in o(emer .//=% the second in early .//?% and the last in &une.//+ President Aquino contends that this pro!ect should not ha(e happened ecause it is anencroachment of the Philippine territory% gi(ing China% as 3ell as ietnam% (aluale intelligenceand data aout the oil reser(es in the contended area+

)urthermore% De Castro contends that as China7s economic and political influence in theregion increases% many of its Asian neighors are gradually eing dra3n into its diplomatic orit%including the Philippines+ As a result of China7s increasing na(al pro3ess% it slo3ly eganasserting its long-held claim to the Spratly archipelago and South China Sea+ In .//% thePhilippine-China relations reached a lo3 point upon the corruption allegations intert3ined 3iththe *#,-B deal+ #he contro(ersy spar4ed 3hen the :SQ0.E million deal 3ith the *hongJ+ Along 3ith that 3as the arupt gro3thin the numer of Chinese language schools in Phnom Penh% 3ith appro9imately 1/%/// studentseach+

According to Nurlant;ic4% China egan utili;ing its charm offensi(e during the late1EE/7s at the time of the Asian financial crisis+ 8hile the :nited States and &apan reluctantlyresponded to the crisis% China manifested a percepti(e re!oinder+ China refused to de(alue itscurrency% something if did not ta4e place 3ould ha(e uried the #hai and Indonesian currencydeep 3ithin the crisis+ #his action pro(ed that China 3as standing up for its neighors 3hichearned the trust of the hea(ily-affected countries in Southeast Asia+ Susequently% China startedenunciating a doctrine of F3in-3inG relations% con(incing states that China 3ill not meddle 3iththeir internal affairs ecause it 3ill not ma4e demands on the other states7 so(ereignty+)ollo3ing that action 3as the gradual opening of its mar4ets% re(ersing its pre(ious disdainto3ards multilateralism% as it signed significant treaties 3ith the Southeast Asian memer states3hich impro(ed political and economic relations et3een the t3o parties+


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Nurlant;ic4 argues that China7s strategy also in(ol(es strengthening its ilateralrelationship 3ith the states that seemed to ha(e a declining relationship 3ith the :nited Statesand &apan% a detail that supports ho3 the Philippines 3as rought closer to China after it3ithdre3 its troops in Iraq ac4 in .//+ Shortly after said e(ent% China in(ited President Arroyofor a state (isit and egan offering greater cooperation and aid+

China furthered its use of soft po3er 3ith pulic diplomacy that enforced peacefulde(elopment+ In Malaysia and Singapore 3ere museum e9hiits to celerate >// thanni(ersary of*heng 'e% a Chinese admiral 3ho sailed across Asia ut did not conquer the lands he set footinto+China7s pulic diplomacy also included hosting o(erseas scholars and creating a (ersion of thePeace Corps to send young Chinese (olunteers to 3or4 for certain pro!ects in de(elopingcountries such as Laos and Burma+ China also uilt net3or4s to ring Asian usinessmen for ane(ent li4e the 8orld ,conomic )orum+

8hen it comes to estalishments of cultural e9changes and financial aid% China has alsoecome more acti(e in the recent years+ According to a study of ational Defense :ni(ersity in8ashington% in .//0% China7s aid to the Philippines 3as four times greater than America7s%

China7s aid to Laos three times greater% to Indonesia nearly doule% and to Camodia% nearlyalmost matched 3ith the :S le(els+In early o(emer .//>% the construction of the orth $ail Pro!ect in the Philippines 3as

made possile 3ith funds coming from the state-o3ned Chinese ,9port Import Credit Agency+#he orth $ail pro!ect 3as created in order to fi9 the congestion in the inoy AquinoInternational Airport AIAJ y connecting Clar4 International Airport to the ational Capital$egion (ia ullet train+ :nfortunately% the pro!ect 3as interrupted 3hen it 3as found to etainted 3ith anomalies from the Arroyo administration and also ecause the Chinese contractor%China ational Machinery Industry Corp SinomachJ had sought more money+ In ./1.% thePhilippine go(ernment determined that the pro!ect must continue as the need to connect Clar4International Airport to the C$ has een more emphasi;ed Manila #imes% ./1.J+ 8hen as4edaout the renegotiation process% Bayan Muna $epresentati(e eri Colmenares said the follo3ingstatement% F#he Chinese go(ernment 3as a3are of the loated o(erpricing and otherirregularities in the B-*#, dealO this is 3hy it did not e(en raise a 3himper 3hen formerpresident 5loria Macapagal-Arroyo cancelled it+ $ecently% the Chinese go(ernment immediatelyagreed for a renegotiation of the orthrail contract 3hich 3as hea(ily fa(orale to China to thedisad(antage of the Philippines+G #he disad(antage that he 3as referring to concerns thecirculation of money from China+ #he state-o3ned an4 3ould lend money and contractor to thePhilippines for the construction including laorJ of the pro!ect ut the country 3ould still ha(eto pay for the loan in the follo3ing years+ China 3ould later on gain more than 3hat it ga(e thePhilippines for the said pro!ect+

Nurlant;ic4 further contends that China7s charm offensi(e is meant to meet the follo3inggoals" 1J to maintain peace on China7s peripheryO .J to reduce #ai3an7s influence in SoutheastAsia% also to change a regional perception of China to een seen as a positi(e% enign actor in theregion% and finallyO 0J to shift influence a3ay from the :nited States of America to create itso3n sphere of influence+

8ith said acts% China 3as ale to uild its o3n sphere of influence 3ithin the region%gaining trust and support of its neighors+ Chinese (alues such as non-interference% respect forother nations7 internal affairs and economic gradualism added more appeal to China7s successstory+


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ASEAN0CHINA F)A

In utili;ing its charm offensi(e 3ithin its o3n regional periphery% China managed tointegrate itself 3ith one of the largest regional organi;ations in the 3orld 3hich is the AS,A+

Due to intert3ining culture and preferences% it ecame an easy tas4 for oth parties to amplifytheir trade relations+ #his 3as done through the creation of the AS,A-China )ree #rade AreaAC)#AJ 3hich is a free trade area among the ten Memer States of the Association ofSoutheast Asian ations AS,AJ and the Peoples $epulic of China+ 6n o(emer % .//%the initial )rame3or4 Agreement )AJ 3as signed in Phnom Penh% Camodia% 3ith the aim ofcreating a free trade area among the ele(en nations y ./1/ and on &anuary 1% ./1/% it came intoeffect+ According to 3orld ran4ing of international organi;ations in terms of population% AC)#Ais the largest and in the aspect of nominal 5ross Domestic Product 5DPJ% it ran4s as the thirdonly after the ,uropean :nion ,:J and orth American )ree #rade Area A)#AJ #he,conomist% ./1/J+ It has the follo3ing three principal agreements 3herein they 3ill ase theirpro(isions on tariff reduction of certain categories of tariff linesO 1+ AS,A-China #rade in

5oods Agreement AC#I5AJ% .+ AS,A-China #rade in Ser(ices Agreement AC#ISAJ and% 0+AS,A-China In(estment Agreement+ According to the statement of the Chairman of the 1= th

AS,A-China Summit in Phnom Penh% Camodia last o(emer ./1.% AS,A is China7sthird largest trading partner and China is considered to e AS,A7s largest trading associate+

Ag%eeent #n )%ade in 5##ds

:nder the AS,A 2 China #rade in 5oods Agreement AC#I5AJ% Parties arecommitted to reduce their tariffs ased on the follo3ing schedules"

1+ ,arly 'ar(est Programme 3hich is a free trade arrangement under the agreement 3hichimplements the gradual reduction of tariffs on agricultural products+ It 3as signed andimplemented on 6ctoer >% .//0 at the E thAS,A-China Summit in Bali% Indonesiathrough a protocol to amend the )rame3or4 Agreement on the Comprehensi(e ,conomicCooperation et3een AS,A and China+ It 3as planned to e implemented from .//-.//> and oth China and #hailand implemented according to their .//0 ilateralagreement+ After the )A 3as signed to implement the program% some AS,A MemerStates found that they are encountering difficulties in implementing the tariff reduction orelimination plan on their products+ In order to protect its agricultural sector% thePhilippines et up a committee on August .//0 to re(ie3 its =%?// tariff lines to 4no3 itscompatiility under the AC)#A frame3or4+ After the e(aluation% the go(ernment

decided to raise its tariffs on > products y .-= percent from .//0-.//?+ China allo3edAS,A Memer States such as the Philippines to ha(e a list of products that 3eregranted fle9iility on tariff rates and the country 3as ale to implement it on // tarifflines+


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.+ ormal #rac4 3hich refers to the arrangement of gradual tariff reduction or eliminationon goods starting from /-= percent on &uly 1% .//= for the first pac4age% > percent tariffreduction y .//? for the second pac4age% and complete tariff elimination on theproducts under the normal trac4 y ./1/ for the last pac4age+ China% Brunei% Indonesia%Malaysia% Myanmar% Singapore% and #hailand instigated the ne3 tariff rate on time since

its implementation on .//=+ 'o3e(er% the Philippines together 3ith Laos% Camodia% andietnam 3as not ale to !oin the implementation of the ne3 tariff rate on time due to thefact that they need to complete the requirements for the appro(al procedure such as list oftariff lines that 3ill e co(ered y reduced tariffs and the fle9iility of the latter+ 6n May./% .//>% the Philippines ecame the se(enth AS,A Memer State to !oin the ne3 tariffrate+

0+ Sensiti(e #rac4 3hich is di(ided into the FSensiti(e ListG SLJ and the F'ighly Sensiti(eListG 'SLJ+ #he trac4 is comprised of unprocessed agricultural products and the numerof tariff lines for each Party shall e su!ected into a ma9imum ceiling+ #he differenceet3een the t3o factions under the trac4 is that those products under the 'SL came fromthe tariff lines originating from the AS,A > Brunei% Indonesia% Malaysia% Myanmar%

Singapore% #hailandJ and China+ #heir tariff lines shall not e more than / percent of thetotal numer of tariff lines under the Sensiti(e #rac4 and products under this category aregranted fle9iility options for safeguarding measures 3hen eing e9ported o(erseas+ 6nee9ample of a product under the 'SL is the rice production coming from Indonesia%Malaysia% and the Philippines+ #ariffs under this category shall e reduced to =/ percenty ./1=+ 6n the other hand% those products co(ered y the SL ha(e an access on thephasing of tariffs for a shorter timeframe+ It requires tariffs to e reduced to ./ y ./1.and shall e follo3ed y a reduction of /-= percent y ./1+ #he implementation ofAC#I5A is e9pected to enefit Parties to the Agreement in terms of fair andequitalereciprocal mar4et access treatments 3ith each other7s e9port commodities+ #hePhilippines implemented its commitments through the follo3ing legal enactments 3hichhas allo3ed traders to en!oy lo3 tariffs 3hen e9porting to China 1J ,9ecuti(e 6rder,+6+J ? for the implementation of ormal #rac4 concessions co(ering the firstpac4age i+e+ .//=-.//J to comply 3ith the /1 &uly .//= milestone% .J ,+6+ >10 for thesecond pac4age of ormal #rac4 concessions follo3ing the schedule of reductioneginning /1 &anuary .//? to 01 Decemer .// and 0J ,+6+ 1 3hich 3as signed on0/ &une .//E for the last tranche of tariff reduction concessions+ #he third pac4ageconsists of all ormal #rac4 products 3hose tariff rates 3ill follo3 the schedule ofreduction eginning /1 &anuary .//E to 01 Decemer ./1/./1. under the AC)#Amodality+

Ag%eeent #n )%ade in Se%vices

#he #IS Agreement 3as signed in &anuary .//? in Ceu% Philippines and entered into force on/1 &uly .//?+ :nder this Agreement% ser(ices and ser(ices supplierspro(iders in the region 3illen!oy impro(ed mar4et access and national treatment in sectorssusectors 3here commitmentsha(e een made+ Ser(ices ha(e ta4en on an increasingly important role in AS,A+ )aced 3ithe9acerating competiti(e pressures on the 3orld merchandise trading front% particularly 3ith theaccession of China to the 8orld #rade 6rgani;ation 8#6J in .//1% AS,A memers ha(estirred into introducing a gamut of measures aimed at impro(ing its domestic in(estment climate


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and regaining competiti(eness on (arious fronts+ #his can e seen through the 4ey initiati(es ofthe AS,A+ In .//=% AC#ISA sa3 the largest foreign-domestic deals ta4ing place in financialser(ices sector in China% rather than manufacturing and industry+ #his ser(es to epitomi;e theheightened interest and opportunities in ser(ices trade et3een China and AS,A+ #he mode ofconsuming aroad ecame (ery present and this is percei(ed to e a part of China7s F5o 5loalG

strategy since .///+#he AS,A 2 China #rade in Ser(ices Agreement AC#ISAJ pro(ides for the e9pansionof trade in ser(ices in the region+ :nder this Agreement% ser(ices and ser(icessupplierspro(iders in the region 3ill en!oy impro(ed mar4et access and national treatment insectorssusectors 3here commitments ha(e een made+ #he mar4et access commitments of theParties to the AC#ISA are contained in the first pac4age of specific schedule of commitmentsthat are attached to the Agreement+ #he Agreement pro(ides for lierali;ation on sustantialco(erage of sectorssusectors especially in more than >/ additional susectors committed yAS,A Memer Countries 3hich are parties to the 5A#S8#6+ #he latter includesmanagement consulting% ad(ertising% accounting% an4ing% securities% insurance% logistics%mo(ies% construction% shipping% and (alue-added telecommunications ser(ices+ In .//=% China

and the AS,A started negotiations on finance and insurance+ Some AS,A countries chose tonegotiate 3ith China on their issues of greatest concern+ Singapore% as an e9ample% is moreinterested in the ser(ice sectors 3hile the less-de(eloped AS,A- Camodia% Laos% Myanmar%and ietnamJ are more interested in e9port opportunities and infrastructures+ 8ith theAgreement% it is e9pected that trade in ser(ices in the region 3ould e9pand and gro3 in scalethrough the four modes of ser(ice deli(ery% namely" 1+ cross-order supply 3hich refers to theindependence of foreign suppliers to3ards other country7s consumers e+g+ telecommunication%postal ser(ices% e-an4ingJ% .+ consumption aroad 3hich refers to the situation 3herein theconsumers of the ser(ices are non-resident in the country 3herein the ser(ice is eing producedand consumed e+g+ tra(el and training of studentsJ% 0+ commercial presence 3hich refers to thesuppliers of ser(ices eing an affiliate or ranch of a foreign supplier e+g+ local ranches ofMultinational Corporations% an4sJ% and + mo(ement of natural persons 3hich refers tosuppliers of ser(ices eing non-residents of a country in 3hich they temporarily reside toconduct usiness e+g+ professionals% construction 3or4ers% domestic helpersJ+ Aside fromincreased trade% the #IS Agreement is also e9pected to ring aout higher le(els of in(estmentsin the region% particularly in sectors 3here commitments ha(e een made% namely" usinessser(ices such as computer related ser(ices% real estate ser(ices% mar4et research% managementconsultingO construction and engineering related ser(icesO tourism and tra(el related ser(icesOtransport ser(icesO educational ser(icesO telecommunication ser(icesO health-related and socialser(icesO recreational% cultural and sporting ser(icesO en(ironmental ser(icesO andenergy ser(ices+ #he AS,A-China #IS Agreement 3as signed in &anuary .//? in Ceu%Philippines and entered into force on /1 &uly .//?+ AS,A and China are in the final phase ofnegotiations on the second pac4age of commitments Bo% .//>J+

Figure 2: Increasing Rate of ASEAN isitors to China


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Source: National !ureau of Statistics of China" 2##$%

Investent Ag%eeent

It 3as signed on August 1=% .//E+ It is the third of the three main agreements concluded underthe .//. AS,A 2 China )rame3or4 Agreement on Comprehensi(e ,conomic Cooperation+China7s in(estment in AS,A 3as a cumulati(e :SQ>+1 illion up to the end of .//% 3hileAS,A7s in(estments into China alone totaled :SQ=+> illion in .// D#I% .//J+ Since .//0%

China and the AS,A Memer States held many rounds on negotiations on in(estment+ #heAS,A )oreign Direct In(estment )DIJ to China mainly comes from Singapore% #hailand%Malaysia% and Indonesia+

#he AS,A 2 China In(estment Agreement is the third of three main agreementsconcluded underthe .//. AS,A 2 China )rame3or4 Agreement on Comprehensi(e ,conomicCo-operation+ #he conclusion of an In(estment Agreement is timely as this pro(ides an enalingen(ironment that 3ill lead to enhanced in(estment flo3s et3een oth sides at a time 3henAS,A and China are oth 4ey emerging economies 3ith strong economic prospects+ China7sin(estment in AS,A 3as a cumulati(e :SQ>+1 illion up to the end of .//% 3hile AS,A7sin(estments into China alone totaled :SQ=+> illion in .//+ #he AS,A-China In(estmentAgreement 3as signed on 1= August .//E D#I% .//J+ 6ne of the most (isile manifestations

of the In(estment Agreement et3een AS,A and China is the 5reater Me4ong Su-regionDe(elopment 3hich 3as proposed y the Asian De(elopment Ban4 ADBJ in 1EE.% thus% is amuch earlier proposal compared to the AC)#A+ It is considered to e a (ery important part in thecooperation et3een China and the AS,A countries+ It is also percei(ed to e a helpful aspectin the estalishment of a free trade area Bo% .//>J+

Figure &: Top Fi'e Countries in the China-ASEAN FTA


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Source: (N Co)trade* !ei+ing A,is Analysts" 2#12.%

PRO,!EMS 9I)HIN )HE ASEAN0CHINA F)A

Chinas M#tivati#n +ithin the EHP

According to Lu Bo% one of the researchers 3ho 3as ale to produce non-conferencepapers% China7s engagement to the ,'P has Freal political or strategicJ intentionsG+ Lu analy;edthe ,'P y product categories% implementation timetale% specific list% e9clusion list% and rulesof origin+ According to the )A% a party shall en!oy tariff concessions y all the other parties forthe products co(ered+ #he ,'P co(ered aout >// agricultural products and Lu Bo found outthat AS,A has ad(antages on most of them+ As a result% China ga(e unilateral concessions toAS,A Memer States on most of them and the latter agreed to cut tariffs on meat% fish% fruits%(egetales% and mil4 from the former+ It is percei(ed that the ,'P is so generous that manyoser(ers 3ondered at FChina7s moti(ation ehindG+ Another suspicion from the internationalcommunity regarding China7s integration to the ,'P is the (isile progress of the 8#6

agricultural negotiation 3herein the former has amplified interests+ According to Lu Bo% openingChina7s agricultural mar4et to AS,A is a good test efore its opening to the 3orld+,conomically% it is important for China to ta4e one step out into its neighoring countries andma4e sure it is safe efore it mo(es for3ard to the 3hole 3orld Bo% .//>J+

9hat c#$ld happen t# ASEAN6

4* Mac%#ec#n#ic Ipact


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Association of Southeast Asian ations AS,AJ - China )ree #rade Agreement )#AJ 3illmainly enefit AS,A through an increasing mar4et access in China7s huge mar4et+ A rise inAS,A7S e9ports% such as rice% sugar% (egetale oils% te9tiles% and leather products increases thedemand for primary factors of products+ #he )#A results in a significant trade creation+ amely%there 3ill e a =0+0 per cent surge in AS,A7S e9ports to China 3hile AS,A7S imports from

China 3ill rise y .0 per cent+ #his leads to an increase in the total e9ports of /+E= per cent+ #he)#A 3ill create some trade di(ersion effects+ #he intra-trade 3ithin AS,A memers 3illsignificantly decline+ )or e9ample% e9ports of #hailand to ietnam and to the Philippines 3ill edeclined y > per cent and =+0 per cent respecti(ely% 3hile the e9ports of AS,A to the :nitedStates and &apan 3ill drop y /+0 per cent and 1+1 per cent respecti(ely+ 5ill% .//?J

#he intra-trade di(ersion gi(es a ig impact among the AS,A memers regarding theirtrading 3ith each other including AS,A7s trade 3ith the :nited States and &apan+ #he logichere is that% the products and ser(ices 3hich are the imports of China to the AS,A memersare lo3-quality ut (ery cheap so the AS,A memers 3ould prefer China7s cheaper productsthat the :nited States7 and &apan7s high-quality products ut e9pensi(e+ #he intra-trade di(ersionhas t3o ma!or negati(e impacts to the relationship of AS,A and the :nited States and &apan

and the second one is the relationship among AS,A memers themsel(es+ )irst% the )#Aet3een AS,A and China hinders the economic trading of the AS,A memers to the :nitedStates and &apan ecause the )#A decreases the trade imports and imports of the AS,Amemers to the :S and &apan due to the lo3er cost of import y the AS,A-China )#A+Second% the )#A also decreases the economic trade of imports and e9ports y the AS,Amemers themsel(es ecause AS,A memers 3ould rather choose to patroni;e China7sproducts ecause they are cheaper than the local products of the AS,A memers+

2* Sect#%al Ipact

Due to lo3er AS,A7s lo3er trade arriers% imports from China 3ill cause a decline in

AS,A7s output of (egetales and fruits+ In addition% etter cost competiti(eness of other

Chinese food products% apparel and leather products due to the )#A is li4ely to cause AS,A

output to suffer Chirathi(at and Malli4amas% .//=J+ Chinese products are cheaper ut lo3

quality compared to the products of :nited States and &apan and e(en to the S,A local

products% ut the AS,A 3ould rather choose Chinese products e(en though it is lo3 quality ut

cheap and the local products of AS,A 3ill e undermined y Chinese products+

8* Negative Ipact f%# !#+e% C#st #f Ip#%ts

#rade creation 3ill more offset trade di(ersion for AS,A 3hile for China there is no

o(ious trade di(ersion+ It remains to e seen ho3 AS,A and China 3ill use theseopportunities to strengthen their economic relationships+ China 3ould loo4 increasingly atAS,A as an alternati(e source of inputs for natural resource-ased or intermediate productsChirathi(at and Malli4amas% .//=J+ egetales and fruits 3ill e9perience a decline in outputdue to import sustitution+ AS,A7s tariff reduction of = per cent 3ill increase imports fromChina y 1E+ per cent 3hile the sector7s total imports 3ill rise y =+1 per cent+ As a result% theoutput 3ill drop y /+ per cent and the trade alance 3ill decline y :S Q?.+E million+ Apparelsli4e food 3ill face a higher competition from Chinese lo3er cost of production and AS,A7s


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+=1 per cent tariff cuts in imports+ #hese 3ill increase imports from China y 1/?+= per cent+#otal imports of apparels are li4ely to increase y =+E per cent+ As a result% the output in thissector 3ill decrease y /+0 per cent+ 5ill% .//?J Cheap% lo3-(alue-added manufactured goodse9ported y China also dominate in the structure of the most AS,A memers7 e9ports% so thereis a ris4 that an increase in imports of these products e+g+ te9tiles% clothing% foot3earJ from

China 3ill hurt the local enterprise+

CHINAS CHARM OFFENSIVE1 CONCESSIONAR7 !OANS AND )HE ISS


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#he t3o countries% along 3ith ietnam% conducted a !oint marine seismic sur(ey of theSouth China Sea in August .//=+ #his acti(ity in(ol(ed a three-phase program of data-gathering%consolidation% and interpretation of aout 11%/// 4ilometers of .D seismic data in the location+#he first phase 3as completed in o(emer .//=% the second in early .//?% and the last in &une.//+ President Aquino contends that this pro!ect should not ha(e happened ecause it is an

encroachment of the Philippine territory% gi(ing China% as 3ell as ietnam% (aluale intelligenceand data aout the oil reser(es in the contended area+

)urthermore% De Castro contends that as China7s economic and political influence in theregion increases% many of its Asian neighors are gradually eing dra3n into its diplomatic orit%including the Philippines+ As a result of China7s increasing na(al pro3ess% it slo3ly eganasserting its long-held claim to the Spratly archipelago and South China Sea+ In .//% thePhilippine-China relations reached a lo3 point upon the corruption allegations intert3ined 3iththe *#,-B deal+ #he contro(ersy spar4ed 3hen the :SQ0.E million deal 3ith the *hongJ+ Along 3ith that 3as the arupt gro3thin the numer of Chinese language schools in Phnom Penh% 3ith appro9imately 1/%/// studentseach+

According to Nurlant;ic4% China egan utili;ing its charm offensi(e during the late

1EE/7s at the time of the Asian financial crisis+ 8hile the :nited States and &apan reluctantlyresponded to the crisis% China manifested a percepti(e re!oinder+ China refused to de(alue itscurrency% something if did not ta4e place 3ould ha(e uried the #hai and Indonesian currencydeep 3ithin the crisis+ #his action pro(ed that China 3as standing up for its neighors 3hichearned the trust of the hea(ily-affected countries in Southeast Asia+ Susequently% China startedenunciating a doctrine of F3in-3inG relations% con(incing states that China 3ill not meddle 3iththeir internal affairs ecause it 3ill not ma4e demands on the other states7 so(ereignty+)ollo3ing that action 3as the gradual opening of its mar4ets% re(ersing its pre(ious disdain


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to3ards multilateralism% as it signed significant treaties 3ith the Southeast Asian memer states3hich impro(ed political and economic relations et3een the t3o parties+

Nurlant;ic4 argues that China7s strategy also in(ol(es strengthening its ilateralrelationship 3ith the states that seemed to ha(e a declining relationship 3ith the :nited Statesand &apan% a detail that supports ho3 the Philippines 3as rought closer to China after it

3ithdre3 its troops in Iraq ac4 in .//+ Shortly after said e(ent% China in(ited President Arroyofor a state (isit and egan offering greater cooperation and aid+China furthered its use of soft po3er 3ith pulic diplomacy that enforced peaceful

de(elopment+ In Malaysia and Singapore 3ere museum e9hiits to celerate >// thanni(ersary of*heng 'e% a Chinese admiral 3ho sailed across Asia ut did not conquer the lands he set footinto+China7s pulic diplomacy also included hosting o(erseas scholars and creating a (ersion of thePeace Corps to send young Chinese (olunteers to 3or4 for certain pro!ects in de(elopingcountries such as Laos and Burma+ China also uilt net3or4s to ring Asian usinessmen for ane(ent li4e the 8orld ,conomic )orum+

8hen it comes to estalishments of cultural e9changes and financial aid% China has also

ecome more acti(e in the recent years+ According to a study of ational Defense :ni(ersity in8ashington% in .//0% China7s aid to the Philippines 3as four times greater than America7s%China7s aid to Laos three times greater% to Indonesia nearly doule% and to Camodia% nearlyalmost matched 3ith the :S le(els+

In early o(emer .//>% the construction of the orth $ail Pro!ect in the Philippines 3asmade possile 3ith funds coming from the state-o3ned Chinese ,9port Import Credit Agency+#he orth $ail pro!ect 3as created in order to fi9 the congestion in the inoy AquinoInternational Airport AIAJ y connecting Clar4 International Airport to the ational Capital$egion (ia ullet train+ :nfortunately% the pro!ect 3as interrupted 3hen it 3as found to etainted 3ith anomalies from the Arroyo administration and also ecause the Chinese contractor%China ational Machinery Industry Corp SinomachJ had sought more money+ In ./1.% thePhilippine go(ernment determined that the pro!ect must continue as the need to connect Clar4International Airport to the C$ has een more emphasi;ed Manila #imes% ./1.J+ 8hen as4edaout the renegotiation process% Bayan Muna $epresentati(e eri Colmenares said the follo3ingstatement% F#he Chinese go(ernment 3as a3are of the loated o(erpricing and otherirregularities in the B-*#, dealO this is 3hy it did not e(en raise a 3himper 3hen formerpresident 5loria Macapagal-Arroyo cancelled it+ $ecently% the Chinese go(ernment immediatelyagreed for a renegotiation of the orthrail contract 3hich 3as hea(ily fa(orale to China to thedisad(antage of the Philippines+G #he disad(antage that he 3as referring to concerns thecirculation of money from China+ #he state-o3ned an4 3ould lend money and contractor to thePhilippines for the construction including laorJ of the pro!ect ut the country 3ould still ha(eto pay for the loan in the follo3ing years+ China 3ould later on gain more than 3hat it ga(e thePhilippines for the said pro!ect+

Nurlant;ic4 further contends that China7s charm offensi(e is meant to meet the follo3inggoals" 1J to maintain peace on China7s peripheryO .J to reduce #ai3an7s influence in SoutheastAsia% also to change a regional perception of China to een seen as a positi(e% enign actor in theregion% and finallyO 0J to shift influence a3ay from the :nited States of America to create itso3n sphere of influence+

8ith said acts% China 3as ale to uild its o3n sphere of influence 3ithin the region%gaining trust and support of its neighors+ Chinese (alues such as non-interference% respect for


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other nations7 internal affairs and economic gradualism added more appeal to China7s successstory+

CHINAS CHARM OFFENSIVE AND MININ5 IN )HE PHI!IPPINES

,n(ironmental degradation descries the erosion of the natural en(ironment through thedepletion of resources% the destruction of ecosystems and the e9tinction of the plant and animalspecies+ It can e caused y direct and indirect human acti(ities and natural e(ents li4eearthqua4es% intense rainfall% tidal 3a(es% and (olcano eruption+ #his issue increased since theIndustrial $e(olution+ #his is mainly caused y the e9traction of the natural resources%production 3aste% and pollution in their natural haitat+ Some of the human acti(ities includemining% deforestation% fuel urning% and pollution+ )8D 5roup Pty Ltd% ./1.J

Mining is one of the most popular !os in the rural areas that ha(e good payment for thepeople in that area to sur(i(e+ #hey are paid in a contractual asis that has stale !os for month%

or for a 3hole year+ Some people thin4 that this is a good opportunity especially to those people3ho does not 3ant to ta4e the opportunity in the uran areas+ #he hunger for metals% a reportfrom the Pacific Strategies and Assesments a political and security ris4 consultancyJ said% couldpartly e responsile for China7s gro3ing role as a ma!or e9port mar4et for the Philippines+

#here are at least .> Chinese mining companies that are legally registered for operationin the Philippines+ #hey are here for the digging not !ust for gold ut also for iron% nic4el% copper%manganese% lead% ;inc% chromite and coalt+ Some of the Chinese largest gold producers ha(eestalished here in the Philippines+ 6ne of these is the *i!in Mining group Company Ltd 3hereinthey ha(e signed% together 3ith the Philippine go(ernment% a Q1 illion :S dollars in gold andcopper e9ploration for = years+ #his is one of the ma!or Chinese mining deals in ./11+ 'o3e(er%

there has een a passage 3ay for the illegal Chinese mining companies to enter the Philippines+#hey made it through the small-scale mining companies+ #hey ha(e intermediaries 3ho areresponsile for the tal4s et3een them and the small-scale companies+ #hey are ma4ing thesesmall-scale mining companies as a pro9y for them to operate fully 3ith paying a lesser ta9+,9ample of an illegal Chinese mining company is the Prime $oc4 Mining 3herein it 3asregistered under the name of Benito Salandanan of Bicol Chromite+ 6ur Correspondence% ./1.J#hese illegal Chinese mining companies may e registered as a small-scale mining usiness utactually it is under a ig Chinese company+ Some of these companies are 6riental Synergy%Macao Kuanta% ihao Mineral resources% Peng Cheng Metallic resources% Prime $oc4 Mining'ote% ./1.J and icua Mining Corporation+ 'ote% Part )our" )ilipino or Chinese@ ./1.J Anorgani;ation got a3are of this prolem especially in the Pala3an area and campaign a no mining

in Pala3an 3herein most of the natural resources e9tracted came from+ Industry sources suggestthat Chinese mining firms claiming to manage small-scale (entures actually engage in large-scale operations using hea(y equipment% mercury% cyanide% and (arious types of e9plosi(es toe9tract ore% contracting to national mining la3s+ In &une ./1.% the en(ironmental agency soughthelp from the Presidential Anti-6rgani;ed crime tas4 force and the Bureau of Customs after theMines and 5eosciences Bureau reported a 0 percent first-quarter decline from the pre(ious yearin production (alue% and from P01+/ illion to PE+>1 illion% a shortfall of P11+?E illion AsianSentinel% ./1.J+


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China7s mine safety record is the 3orst in the 3orld+ More than .%>// Chinese minersdied in mining accidents in .//E+ 8hile China accounts for / of the 3orld7s gloal coaloutput% it accounts for / of mining deaths in the 3orld BBC% ./1/J+ Inside China% safety incoal mining in China is a critical issue+ #he numer of fatalities is unacceptaly high%

particularly due to the numer of unregulated small coal mines that ha(e operated in recent years8orld Coal 6rgani;ation% ./1.J+ Industry sources suggest that Chinese mining firms claimingto manage small-scale (entures actually engage in large-scale operations using hea(y equipment%mercury% cyanide% and (arious types of e9plosi(es to e9tract ore% contracting to national miningla3s+ #he Chinese companies thus are gaining a reputation for tramping on en(ironmentalstandards+ #he illegal Chinese mining companies seem to go under the Philippines policiesgo(erning mining matters+ #here are t3o specific la3s that are (iolated y Chinese miningcompanies+ )irst is the Small-Scale Mining Act of 1EE1 3hich supposedly is for the enefit ofthe small-scale miners that only utili;e sho(els to e9tract underground resources+ A small-scalemining company can ha(e a permit directly from the local go(ernment units 3hich only cost foraout 1/%/// P'P Q.1J only and an additional of Q0=/ for the en(ironmental permit in the

pro(incial le(el+ Second is the Philippine Mining La3 of 1EE= that states that the country7sresources should not e e9ploited for the supply of other country or for their enefit+ Many ofthis e9tracted resources% only 0 are eing declared in the customs 3hile the E? are processedillegally $odis% ./1.J+ Chinese mining companies are ale to e9port these resources 3ithoutpaying the right ta9es thru 3hat 3e call Fac4 door7 3herein they can rie the local officials+Ta/le 1: 0ist of Registered Chinese 3ining Co)panies in the 4hilippines


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CHINAS =5OIN5 O PO!IC7 AND I)S IMP!ICI) =MISSION>

CONF


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PO!I)ICA! 5OA!S OF )HE CONF


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Refe%ences

Acharya% A+ ./11% &uly 11J+!eyond the Chinese 3onroe 5octrine+ ,ast Asia )orum+ $etrie(edMarch 1% ./10% from http"333+eastasiaforum+org./11/?11eyond-the-chinese-monroe-doctrine

Amersagen% S+ ./11J+ Realis)" 0i/eralis)" and Constructi'is) in International Relations%$etrie(ed March 1E% ./10 from http"amersagen+hupages+comhu$ealism-Lieralism-and-Constructi(ism-in-International-$elations

Ang See% #+ 1EE?J+ Chinese in the 4hilippines% (ol+ .+ pp+ 0% -10+ Naisa Para sa Naunlaran% Inc+"Ma4ati City

Arsenault% P+ .//?J+ $etrie(ed March 10% ./10% from Academia"http"333+academia+edu.1/??SoftUPo3erUAndU)oreignUPolicyUCharmUInUChinasU$iseU#oU5reat-Po3erUStatus

Barme% 5+ ./1/J+ Strangers at 6o)e% #he 8all Street &ournal+ $etrie(ed March 10% ./10 fromhttp"online+3s!+comarticleSB1///1./=.??/>.>/=?=0>E0E/>>//E=1..+htmlVarticle#as0Darticle

Bo% L+ .//>J+ ASEAN-China Free Trade Agree)ent: Negotiations" I)ple)entation" and4rospect% AS,A-China ,conomic $elations+ IS,AS Pulishing" Singapore+ p+ =Buaron% D+$+ ./1/J+!inondo: 3anila7s China To8n% #ourism Philippines+ $etrie(ed March 10%

./10 from http"tourism-philippines+cominondo-manilas-chinato3nBergonia% #+ ./11J+Chinese 3ining Fir)s S9irt 46 0a8s% Inquirer e3s+ $etrie(ed fromhttp"ne3sinfo+inquirer+net?>/=chinese-mining-firms-s4irt-ph-la3s

Carlson% B+ ./1.J+ Confucius Institute: Education !onus or ily Tro+an 6orse;% 5loal Post+$etrie(ed March 1E% ./10 from http"333+gloalpost+comdispatchne3sregionsasia-pacificchina1./>/1confucius-institute

China Daily+ ./1.% &une .1J+ China 5aily+ $etrie(ed March 1% ./10% fromhttp">+1E+1.+11333+china-usa+net3p-contentuploads./1./.south-china-sea-dispute+gif

China Laour Bulletin+ ./11J+ old 3ines iolate 5ust E)ission SafetyStandards ? Sur'ey% $etrie(ed from http"333+cl+org+h4encontentE=-percent-china,./EEs-gold-mines-(iolate-dust-emission-safety-standards-sur(ey

Churchman% M+ ./11J+ Confucius Institutes and Controlling Chinese 0anguages% China'eritage Kuarterly+ $etrie(ed March 1=% ./10 fromhttp"333+chinaheritagequarterly+orgarticles+php@searchtermW/.>Uconfucius+incRissueW/.>

Colin+ ./11% 6ctoer .1J+E,pat Chronicles+ $etrie(ed March 10% ./10% from http"333+e9pat-chronicles+com./111/monroe-doctrine-an-o(er(ie3

Dacalanio% S+ ./1.J+Inside Ancient Relationship /et8een China and 4hilippines% Demoti9+$etrie(ed March 1=% ./10 from http"333+demoti9+comne3s1=/=.E0inside-ancient-relationship-et3een-china-and-philippinesVmedia-1=/E0

D#I+.//J+ ASEAN-China Free Trade Agree)ent FTA.% $etrie(ed March 10% ./10 fromhttp"333+dti+go(+phdtiinde9+php@pW>

)o9man% S+ ./10J+ The Asian 4o8er Shift that7s 4ropping up China% Kuart;+ $etrie(ed March1=% ./10 from http"q;+com>=1=the-asian-po3er-shift-thats-propping-up-china

5al(e;% D+ ./1.J+ The China Analyst% #he China Sourcing Blog+ $etrie(ed March 1E% ./10from http"333+chinasourcinglog+orgregulation


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5ill% B+ .//?J+ The Rising Star: China7s Ne8 Security 5iplo)acy% #he Broo4ings Institution"8ashington% D+C+

5o% &+ .//J+A !rief 6istory of Chinese in the 4hilippines% ou#ue+ Xideo )ileY+ $etrie(edMarch 1=% ./10 from http"333+youtue+com3atch@(W0aP)ais)C8

'olmes% &+ ./1.% &une ..J+ China@s 3onroe 5octrine+ $etrie(ed March 1% ./10% from #he

Diplomat" http"thediplomat+com./1./>..chinas-monroe-doctrine.ational Bureau of Statistics of China+ .//=J+Rising ASEAN isitors to China% AS,A-China,conomic $elations" Mo(ing #o3ards Ser(ices+ Chang Chiou i+ p+ 1=

ational Statistics 6ffice+ ./1.J+ $etrie(ed fromhttp"333+census+go(+phsitesdefaultfilesattachmentsitsdtradei1.1.ta=+pdf

Pacific Strategies and Assessments+ .//EJ+ China7s 3ining ccupation of the 4hilippines%$etrie(ed from http"333+psagroup+cominde9+phpchinas-mining-occupation-of-the-philippines

Pastrana% D+ .//J+ BTE-N!N Scandal Triggers 4olitical Crisis in the 4hilippines% 8orldSocialist 8esite+ $etrie(ed March 1=% ./10 fromhttp"333+3s3s+orgenarticles.///0phil-m/?+html

$odis% $+ ./1.J+ China7s 3ining ccupation of the 4hilippines% Inquirer 5loal ation+$etrie(ed from http"gloalnation+inquirer+net=E0?Echinas-mining-occupation-of-the-philippines

Sarina% A+ ./10% March .1J+International !usiness Ti)es+ $etrie(ed March 1% ./10% fromChina-Philippines #erritorial Standoff Leads #o Clampdo3n on #radeO ,conomicSanctions Li4ely" http"333+itimes+comchina-philippines-territorial-standoff-leads-clampdo3n-trade-economic-sanctions-li4ely->E.1=

Sil(erio% I+ A+ ./11J+!ayan 3una tells Auino to Slo8 5o8n on 4lans to Forge Ne8 5eals8ith China% 5loal Balita+ March 1=% ./10 from http"gloalalita+com./11/E1/ayan-muna-tells-aquino-to-slo3-do3n-on-plans-to-forge-ne3-deals-3ith-china

S;c;udli4-#atar% &+ ./11J+ Soft 4o8er in China7s Foreign 4olicy+#he Polish Kuarterly ofInternational Affairs+ 8ars;a3a" Centrum Poligrafii Sp+ ; o+o+% ul+ Zopus;a[s4a =0% /.-.0.

#he ,conomist+ ./1/J+ The China-ASEAN Free Trade Agree)ent: A+ar for !usiness% $etrie(edMarch 1?% ./10 from http"333+economist+comnode1=.11>.

:ni(ersal Access to Competiti(eness and #rade+n+dJ% ASEAN-China FTA 4ri)er% XPD) fileY+$etrie(ed March 1?% ./10 from http"333+phile9port+pharterfli-phile9port-file-portletdo3nloadpolicyUmar4etde()#AUregionalUfreeUtradeaseanchinaprimer+pdf

8orld Coal Association+ n+dJ+ Safety Issues% $etrie(e from http"333+3orldcoal+orgcoal-societysafety-issues

n+aJ+ ./10J+ Introduction to Confucius Institute% 'anBan+ $etrie(ed March 1E% ./10 fromhttp"333+hanan+comintroductionconfucius-instituteintroduction-confucius-institute+html


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8ith the amendment in 1E1

F6EREAS" despite the pro)ulgation of 45 No% 1#$ a)ending 45 No% G#H /y

increasing the penalties for certain for)s of illegal fishing and dealing in illegally caught fish or

fishery auatic products and pro'iding that the )ere possession of such e,plosi'es 8ith intent to

use the sa)e in illegal fishing punisha/le" it appears that illegal fishing is still ra)pant*

6EREAS" so)e fiscals are hesitant and reluctant to file illegal fishing cases against the

'iolators of the fishery la8s" rules and regulations /ecause of the pro'ision in the last paragraph

of Section & of 45 No% G#H 8hich states that action on any 'iolation )entioned in Chapter I

thereof shall /e ta9en if the 3inister so decides* and

6EREAS" to effecti'ely and successfully prosecute" illegal fishing cases" it /eco)es

i)perati'e to further a)end 45 No% G#H /y deleting the afore)entioned constraint*G

China's Charm Offensive

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Transcript of China's Charm Offensive