Over Pandesal: Business, political leaders, and experts urge balanced foreign policy and engagement with China
In light of a fluctuating global economy, characterized by U.S.-imposed tariffs and concerns regarding a potential recession, distinguished leaders and analysts at today’s Pandesal Forum advocated for a reshaped Philippine foreign policy that emphasizes economic practicalities and diplomatic relations with China. The event took place at the Kamuning Bakery Cafe in Quezon City, where moderator Wilson Lee Flores highlighted the urgent need for stronger bilateral trade, infrastructure collaboration, and reforms in visa policies to capitalize on China’s economic potential while preserving important strategic alliances.
L-R: Wilson Lee Flores, Prof. Rommel Banlaoi, Dr. Cecilio Pedro, Nikki Coseteng, Prof. Richard Heydarian
Dr. Cecilio Pedro: A Call for Economic Collaboration
Dr. Cecilio Pedro, founder of Lamoiyan Corporation (Hapee Toothpaste) and Honorary President of the Federation of Filipino Chinese Chambers of Commerce & Industry (FFCCCII), began the discussion by marking the 50th anniversary of diplomatic relations between the Philippines and China, which were established under the leadership of the late President Ferdinand E. Marcos. He stated, “China is not just our neighbor—it is the world’s second-largest economy and a vital market for Philippine exports such as agriculture, minerals, and services.” Dr. Pedro further emphasized the potential economic transformation tourism could bring, highlighting China as the global leader in this sector. “Imagine if millions of Chinese tourists were to visit and spend here annually. Achieving this, however, requires safer streets and stability.” He also received applause for advocating the reinstatement of the death penalty for kidnapping, labeling it a “scourge” damaging the Philippines’ international reputation.
Nikki Coseteng: Bridging Infrastructure Gaps
Former Senator Nikki Coseteng echoed Dr. Pedro’s sentiments, urging the Philippines to “catch up” with ASEAN counterparts in leveraging Chinese investments in infrastructure. She cited successful projects in neighboring countries, including Thailand’s modern rail initiative, Indonesia’s Jakarta-Bandung high-speed train, Laos’ BRI railway, as well as railway developments in Vietnam and Malaysia, all resulting from constructive partnerships with China. Coseteng criticized the Philippines’ restrictive visa policies for Chinese tourists and investors, contrasting them with more lenient approaches taken by other Asian nations. She posed a crucial question: “Why are we making it harder for Chinese investors and tourists to choose us? A reform in visa policy could unlock billions of dollars in additional annual revenue.” Coseteng advocated for reduced hostilities and increased diplomacy in the Philippines’ economic strategy with China, emphasizing the benefits for national development.
Prof. Rommel Banlaoi: Prioritizing Cooperation Amidst Tensions
Prof. Rommel Banlaoi, a security studies expert, addressed territorial disputes directly, clarifying that it is actually Vietnam—not China—that occupies the majority of land features in what the Philippines refers to as the Kalayaan Islands. He argued, “While sovereignty disputes must be resolved peacefully and through diplomatic channels, they shouldn’t hinder cooperation in critical areas such as renewable energy, artificial intelligence, trade, infrastructure, or agricultural technology.” Banlaoi pointed to historical dialogues between China and the Philippines concerning fisheries and oil exploration in disputed territories as evidence that “diplomacy and development can coexist.” He underscored the importance of prioritizing Philippine strategic and economic interests in relations with an emerging economic superpower like China.
Prof. Richard Heydarian: Diversifying Partnerships
Prof. Richard Heydarian, known for his critical approach to China’s actions in the South China Sea, surprised attendees by recognizing Beijing’s significant economic achievements, including its massive poverty reduction and advancements in technology. He noted that even some of the U.S.’s closest allies, such as Germany and France, are now diversifying their foreign policies while maintaining NATO relationships. Heydarian emphasized that the Philippines should also seek to diversify its partnerships without severing connections with traditional allies. He highlighted the necessity of fostering constructive relations with China as an economic powerhouse while advocating for a continual enhancement of national defense capabilities.
Wilson Lee Flores: Learning from Asia’s Strategies
Wilson Lee Flores, the moderator, called on the Philippines to “learn from Asia’s playbook,” highlighting how competing nations are realistically prioritizing economic interests over geopolitical tensions. “China and India, despite historical border conflicts, are mending and strengthening diplomatic ties. India’s largest trade partner has now become China, expanding economic cooperation.” He pointed out that China, Japan, and South Korea, despite past animosities, are integrating their supply chains and rekindling high-level trilateral summits. “If they can achieve this, why can’t we?” Flores urged the Philippine government to actively enhance connections with China to mitigate the impact of U.S. protectionism and global uncertainties, noting, “The U.S. is imposing trade tariffs on both allies and rivals alike. By increasing exports to China and attracting Chinese investors, we can counter these risks.”
