While the Philippines cannot take China out from the equation, it can adopt a derisking strategy to prevent them from gaining full control of the country's critical sectors, a political analyst said.
Asian Center of the University of the Philippines Professor Richard Heydarian said derisking would loosen China's grip on the country's critical sectors but it would still allow the Philippines to continue working with China in various areas of cooperation.
"Ang kailangan po natin is sisiguraduhin natin na mag—ito ang term diyan – de-risk tayo, ano ang ibig sabihin ng de-risk? Kasi dati decoupling iyong sinasabi nila, e, decoupling means tanggalin lahat ng mga Chinese na iyan, kasi naku delikado tayo – (We need to ensure to de-risk. What does it mean? We used to say decoupling, but decoupling means to completely take China out, that's dangerous) that’s not doable! China is so important, so advanced and so our neighbor, you cannot take out China from the equation," Heydarian said during the Saturday forum in Quezon City on Feb. 1.
"So, what is derisk? High-fence, small-yards meanings issues specific but clear safeguards," he explained.
Heydarian further said that derisking does not mean kicking out Chinese citizens and investments, but safeguarding the country's critical sectors.
He cited what the Netherlands is doing in safeguarding their capability in lithographical sciences where they restrict Chinese students from entering certain laboratories in Netherlands "because there’s a fear that they may learned lithographical sciences that could help them to develop their own next generation Nvidia-level semiconductors."
"That means we have to do the same thing here, we have to de-risk, hindi pupuwede na iyong ating (we should not allow our) critical infrastructure ay (to be) 100 percent run or significant run by a company that is more state-owned," Heydarian said.
The analyst also cited the maiden investment did by the state-run Maharlika Investment Corporation to the Synergy Grid and Development Philippines Inc. (SGP) for a 20 percent stake to secure a foothold in the National Grid Corporation of the Philippines (NGCP).
"NGCP one is an interest in case, because it’s 40 percent owned by Chinese state-owned company, but it’s 100 percent run by Chinese engineers... So, let’s not get fooled by this 40 percent. So, maybe Maharlika Fund did the right thing to dilute iyong private sector 60 percent part, maybe Maharlika Fund needed to do something nice, it looks good. But, that’s not enough, that’s not enough," he said.