China will one day realize that if it wants to win friends and influence people, and therefore earn a preeminent spot on the world stage, might makes right isn’t the way to go.
For now, China is flexing its muscles in its neighborhood because it can.
Although the Chinese are claiming the entire South China Sea as part of their territory, their jets aren’t buzzing US military aircraft or shooing away US warships in the Spratlys because they can’t.
But the Chinese will keep pushing the limits of what they can do to stake their territorial claim. They are building airstrips, naval bases and forts across the Spratlys — and never mind if sometimes the islets and atolls disappear during high tide.
They are deploying missile-equipped jet fighters and submarines, and soon they are sending out an aircraft carrier.
When countries with puny external defense capability such as the Philippines protest Chinese intrusions, Beijing’s reaction is, “Make us stop.” (Sorry, “stop” was missing in my previous column.) And of course we can’t — unless Uncle Sam steps in.
But when it comes to dealing with China, it’s useful to bear in mind that even the United States has its own interests to look after and balance against those of its allies such as the Philippines. The US and China are major economic partners, and the two nuclear powers are sensible enough to see that armed confrontation can only bring mutually assured destruction.
In recent years, US officials have said that they want “partners, not clients.” With all the troubles around the globe, the world’s supercop can only do so much, and it will surely appreciate seeing its traditional allies becoming more self-reliant in national defense.
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China got to where it is now because it does not like relying on others for its own defense.
Some quarters will always question the wisdom of spending a fortune on missiles and jet fighters in a land where hundreds of millions still live below the poverty line. But credible defense and self-reliance in national security can boost national pride. You sense that pride in countries such as India, Malaysia and Pakistan. You sense it strongly in China, even amid all the complaints about suppression of dissent and other human rights violations.
The Chinese got to where they are because they are doing their homework, seeing the glory in getting rich as Deng Xiaoping famously declared, and restructuring their economy into something that Mao Zedong wouldn’t recognize.
Their objective is improving the lives of the masses, and that’s not just political rhetoric. China’s Communist Party is acutely aware that poverty breeds unrest and political instability.
Instead of sending their people to other countries to find work, the Chinese are creating employment opportunities in their own land, and luring foreigners to create jobs right there in China through incentives that neighboring countries are hard-pressed to match.
The result is not only a steady increase in per capita income but also the wherewithal to develop the most powerful military in this part of the planet.
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In southern China’s Yunnan province, for example, which is bent on catching up with more prosperous neighbors, authorities are offering, as part of a policy of “two exemptions and one subsidy,” three years of free rent for standard manufacturing plants in its 119 industrial parks.
Registration processes for foreign investments have been relaxed, and incentives such as full tax refunds and priority in land use are being dangled to lure high-tech projects and enterprises that will mean large economic benefits for China.
Even Filipino investors will want to move their operations to Yunnan, which is positioning itself as a gateway between China and South and Southeast Asia.
One thing we cannot offer is 100 percent ownership of a foreign enterprise, which communist China can guarantee. Really, President Aquino should push to have this constitutional restriction amended if he wants job-generating investments. Because he is perceived to have no personal agenda, Charter change is possible under his watch.
Charter change should also set limits on judicial power. When it comes to business rules and many economic policies, certain agencies should have the final word, without the issue needing to go through the courts.
P-Noy should also settle the NAIA-3 controversy once and for all. His late mother honored the international obligations incurred by Ferdinand Marcos, including those that were onerous for the country.
The vice president of the German parliament, Hermann Otto Solms, visited Manila last week and said cooperation between the two countries, which has always been very good, should become better.
German Ambassador Christian-Ludwig Weber-Lortsch, who hosted a dinner Thursday at his home for the visiting delegation from the Bundestag, also hailed bilateral relations and praised Philippine democracy, which he noted is not common in this part of the world.
Weber-Lortsch said bilateral ties are strong enough to weather some storms “and even lawyers.” It was, of course, a reference to the continuing legal battle between the Philippine government and German airport operator Fraport AG together with its local partner Piatco.
Lawyers representing the Philippines before the international arbitration court in Singapore are charging Manila $31 million; for the other side, the lawyers have presented a bill of only $5 million.
Earlier this year a reliable source told me that the P-Noy administration was bent on signing a final settlement with Fraport/Piatco “soon.” But the talks handled by one power bloc are now in limbo after the other bloc muscled its way in.
German investors aren’t the only ones spooked by this mess. Even non-Europeans have told me their investors, although bullish about the Aquino administration, are hedging their bets to see how P-Noy will deal with this controversy.
With few job-generating investments, limited exports and limited resources, we will remain dependent on friends for many of our needs, including external defense.
Weber-Lortsch said the nature of power these days is no longer military or financial but “smart power” and the ability to make compromises.
But for now China is aggressively asserting its territorial claim in the South China Sea, because it can.
In our case, we can’t.