Boycotting Chinese firms will also hurt PH economy —business group

The Federation of Filipino-Chinese Chambers of Commerce and Industry Inc. (FFCCCII) on Thursday warned about the possible economic impact if the government decides to cut ties with Chinese companies and products in the aftermath of another incident in the West Philippine Sea.

In an interview on Super Radyo dzBB, FFCCCII president Cecilio Pedro expressed reservations about Senate President Juan Miguel Zubiri's call to boycott Chinese firms.

“Alam niyo ‘yung boycott na ‘yan, nakakasama to both countries. Kasi kung sila, nag-boycott din, hindi bumili sa atin ng mga raw materials natin, mga prutas na ine-export natin, maraming mapipinsala diyan. Kaya hindi gano’n kadali na sabihin na boycott kasi babalikan din tayo niyan eh,” said Pedro. 

(You know, the boycott will be bad for both countries. What if China also boycotts us and stops buying raw materials, and the fruits we export? A lot will be affected. It's not that easy, because it may also affect us.)

Pedro added that the boycott call should be carefully studied and take into consideration that China is the Philippines largest trade partner, accounting for 18% of the Philippines' total foreign trade or $39 billion.

The majority of the imported goods that entered the Philippines last year were also from China, which reached $28 billion or 20% of the total imports.

Pedro urged Philippine politicians to calm down and look for better solutions to address the tension in the West Philippine Sea.

“Kung nag-boycott tayo, magiging hindi maganda sa future natin… China is our biggest partner. Isa sa pinakamalaki. Sayang ang opportunity…maganda magagawa ng Tsina para sa atin. Malaki ang market nila, marami tayong produkto na pwedeng ma-export sa Tsina,” he added.

(A boycott will not be good for our future. China is our biggest partner, it would be a waste of opportunity. We can benefit from having a good relationship with China. They have a big market and we can export a lot of our products there.)

Meanwhile, an economist said the Philippines should strengthen its manufacturing and agriculture sectors to lessen its dependence on Chinese goods.

''Mas maging competitive tayo para hindi natin kinakailangang dumepende sa China. I think mas malakas na resbak yun kumpara sa outright na pag-boycott,'' said John Paul Rivera, chief economist at Oikonomia Advisory and Research, Inc. in Maki Pulido's report on '' 24 Oras'' on Thursday.

For his part, Zubiri said that the FFCCCII should tell their Chinese benefactors and contacts to get out of the WPS.

"If the Chamber is worried about the economic impact a boycott would bring, then they should help convince their benefactors and Chinese state-owned contacts to get out of Philippine territory in the West Philippine Sea," he said in a statement. 

The Senate president also wanted the FFCCCII to condemn the recent incident involving Chinese and Philippine vessels in the Ayungin Shoal. 

"May we hear a condemnation from them, please, on the water cannoning of our troops and personnel that happened last week?" Zubiri asked.

The Senate earlier adopted a resolution condemning China's incursions in the West Philippine Sea and its continued harassment of Filipino fishermen.

On Sunday, the Philippine Coast Guard (PCG) reported that the Chinese Coast Guard (CCG) had “dangerous maneuvers and illegal use of water cannons” against its vessels going to Ayungin Shoal on August 5 for a resupply mission at the BRP Sierra Madre.

The CCG, for its part, said it had taken "necessary controls" against Philippines boats that had "illegally" entered its waters.

China has claimed that the Philippine government had earlier promised to remove the BRP Sierra Madre in the Ayungin Shoal, which Beijing calls as Ren’ai Jiao.

On Wednesday, President Ferdinand "Bongbong" Marcos Jr. denied that the Philippine government made such a promise to China.

“I’m not aware of any such arrangement or agreement that the Philippines will remove from its own territory its ship, in this case, the BRP Sierra Madre from the Ayungin Shoal,” Marcos said.

"And let me go further, if there does exist such an agreement, I rescind that agreement now,” he added.

A note verbale was also sent to China following the incident. —Giselle Ombay/ VAL/VBL, GMA Integrated News