Disclaimer: The content of the article is written with authoritative information combined with personal opinions, and the source of the literature has been marked at the end of the article, please be aware
On July 29, China withdrew very directly from the Subic-Clark railway project in the Philippines.
China just "throws" the project worth 50 billion yuan, and the Philippines is in a hurry to find United States and Japan to help "take over", what is the result?
Dream Shattered Luzon: A Railroad That Failed to Start
On the Philippine island of Luzon, it was originally agreed that the Chinese side would undertake a very large railway project. Although the 71-kilometer-long railway line does not seem to be long, it is regarded by the Philippines as a key link in the "Luzon Economic Corridor".
However, just when the Filipinos were full of anticipation, China's abrupt withdrawal was a resounding slap in the face, waking them up from their sweet dreams. The investment of 50 billion Philippine pesos, which could have brought huge economic dividends to the local area, has now become a dead letter.
Undercurrents in the South China Sea: The Invisible Killer of Economic Cooperation
Why is China choosing to withdraw at this moment? Then we have to talk about the "death" behavior of the Philippines, since the Marcos administration began to manipulate its own politics, it is not to be wanted, following the crazy clamor behind the United States, and even more provocative on the South China Sea issue.
When one side constantly challenges the other's bottom line, the foundation of cooperation is shaken.
Moreover, this project is not the only one that has been withdrawn, there are two other investments that are very important to the Philippines, and China does not want them. This series of actions, like a domino effect, has had an all-round impact on the Philippines' infrastructure construction plan.
You must know that China's investment in the Philippines is quite high, in the first half of 2023 alone, there will be 1.07 billion US dollars, and if they are withdrawn one by one, the Philippine government will have to hold their heads and cry.
Finding a new backer: A journey for help in the Philippines
Faced with China's abrupt withdrawal, the Philippine government is clearly in a dilemma. To salvage this critical project, the Philippines has turned to United States and Japan for help, hoping to find new investors to fill this huge funding gap.
Originally, the United States regarded China as an "imaginary enemy" and led a group of younger brothers to trouble China all day long, and the Philippines also took this opportunity to show its loyalty, and the most important thing is to invest.
But there is still no accurate number, and the United States pie is not small, but there is no actual action. After all, in the international investment market, each country has its own calculations and concerns.
I'll draw you a pie first
In its quest for alternative investments, the Philippines seems to have high hopes for United States. In April, Marcos Jr. made a special trip to the United States and wrote a sky-high check for $100 billion in funding in the coming years.
You know, the United States' ability to "draw a big pie" is famous. Take the $1 billion investment promised by the United States Secretary of Commerce during his visit to the Philippines this year, months later, it is still thunder and rain.
Why? There is no money, just United States are too busy to take care of themselves, the financial crisis and the general election have not yet been concluded, and seeing that the United Kingdom have declared bankruptcy, maybe they want to do the same, but they don't dare to do it because of the problem of face.
And Japan, an island country, you really think that there is such a big strength as China, not to mention anything else, in terms of infrastructure, there is really no country that can compete with China.
When the agreement was first signed, the Philippines really squeezed the conditions to the extreme, let's just put it this way, first take out a loan, that is, lend our money to build a railway for them, and then, pay in installments, and the interest must be minimal. Isn't this just taking our money to build the railway for them, and when they make money to repair it, they will pay it back in batches, which is really "shrewd", why don't you grab it?
Comparison between China and the United States
China's overseas investment has always been not small, and many countries have received substantial help, but United States is a little different.
On the surface, he is very good to the Philippines and draws him to deal with China, but behind the scenes, the money invested in the Philippines is pitiful, at most $1 billion a year, less than half of that given to Thailand. This difference in investment preferences raises questions about the strategic importance that United States attaches to the Philippines. In fact, the Philippines is the role of cannon fodder, whining and "mocking" China all day long, and in the end I don't know what will happen.
The Marcos Jr. administration's change in China policy, although it won the favor of United States, also lost China, an important economic partner.
Continuing to follow the United States could lose more Chinese investment; But if you try to repair relations with China, it could affect the alliance with United States.
epilogue
China's divestment of the Philippine railway project has taught us a vivid lesson in international relations. It tells us that in today's world, economic cooperation has never been a purely economic issue, and complex political considerations are often involved.
This unfinished road is not only the interruption of a transportation project, but also a microcosm of an era.
Information sources:
Observer.com: After China's withdrawal, the Philippines' 6.2 billion railway project wants to find the United States and Japan to take over
International Sharp Commentary: Why did United States draw this "big pie" for the Philippines?
CCTV International News: Former U.S. military officials say the Philippines is just a tool for United States