CHINA-PHILIPPINES: REUTERS UNVEILS MASSIVE CHINESE INVESTMENT IN DUTERTE'S HOMEBASE OF DAVAO

Reuters reported (May 17) that the Davao consulate has also become a place from which Chinese government officials can interact directly with other Mindanao politicians, regularly playing host to celebrations, dinners, and other formal and informal events. The Chinese consul general regularly visits officials at agencies such as the Bureau of Customs in the port of Davao and the local offices of the National Economic Development Authority. It said a search of the Philippine Security Exchange Commission's company registration database reveals that Davao has been a recipient of Chinese foreign direct investment and development finance since Rodrigo Duterte first became mayor more than two decades ago: 445 new companies involving mining, construction, real estate, wholesale, and retail sales backed by Chinese investors were registered between 2000 and 2019. One prominent Hong Kong-based clean energy company, China Dynamics Holdings, signed a long-term contract to provide at least 500 electric buses to Davao. Beijing recently authorized a $364 million loan for the construction of the Samal-Davao bridge via the China Export-Important Bank. Construction of the bridge will be tendered to Chinese companies. Other Chinese initiatives include the building of drug rehabilitation centers in the Mindanao provinces of Sarangani and Agusan del Sur undertaken by China State Construction Engineering Corp. The Chinese-controlled Friends of the Philippines Foundation (FPF), established by Hong Kong business owner Xu Minliang, funded the Northern Mindanao Wellness and Reintegration Centre. The FPF is most likely an affiliate of the United Front. There are now commercial flights from Davao City to the Chinese cities of Beijing and Tianjin, and in 2018, Xiamen Air established direct flights between Davao and Jianjiang. Chinese tourists make up over 37% of Davao's total foreign tourist visits in 2019 spending an average of $3,000 each over a typical five-day visit on food, accommodation, and transport. Nanning  and Jinjiang are now sister cities to Davao. China seems also to have won over Sara Duterte and her family, likely securing China's political interests in the Philippines for the next six years and possibly the six years after that if Sara Duterte succeeds Marcos as president, as is widely expected.





Subscribe to Newswire | Site Map | Email Us
Centre for China Analysis and Strategy, A-50, Second Floor, Vasant Vihar, New Delhi-110057
Tel: 011 41017353
Email: office@ccasindia.org