China Money Sought After By South-East Asian Nations On The Rise
Recently, Philippine president Rodrigo Duterte visited China, searching for more deals for projects in the Philippines that could generate jobs.
According to ABS-CBN News, this yielded close to $12.165 billon in business deals as well as a grant of around $148.5 million. The key subject is to gather even a few of the money that China has been funneling to overseas projects and friendly countries.
Chinese investments are precious to countries like the Philippines, which has some development projects in need of funding. They are looking for investments and China is ready to invest.
Despite the situation in the South China Sea, the Philippines is banking on Chinese practicality. Firms trade with their neighbors--whatever clash the governments have on interests in this part of the country--with practicality.
Chinese investments in the Philippines, in the same degree of accumulation that is seen today, had actually started a little later than its neighbors.
The trade war between US and China is another cause for concern among those who are speaking with China in terms of investments. According to CNBC, this time, analysts are wondering whether the Trump tariffs are really worth it, and who pays for them, should they be imposed right to the letter.
In many occasions, Trump had said that the US is collecting all of these dollars from China. He has tweeted about it, and has come out in the media about it; however, research has also shown that most of the tariffs that Washington had collected moved in favor of China.
US traders and consumers ended up paying more than they needed to if they are buying or trading with Chinese firms and counterparts.
China may have ended up with a bigger bite than they could chew; analysts have said that the trade war affected China's economy as well. However, consumer prices have gone higher, and customers have evidently reeled against the China-US trade war. China's economy is expected to still grow by 1.3%, compared to the lousy 0.5% of the US.
That being said, governments like the Philippines--who are looking for investors in aid of their growth--has a better business doing deals with China rather than the US. If the pivot of growth is certainly in China's backyard, then it is wise to continue becoming part of China's initiatives and be a part of that inclusive growth.