By Kyle Aristophere T. Atienza, A reporter
The Philippines will continue to cooperate closely with the United States under President-elect Donald J. Trump, who is likely to cooperate with the Indo-Pacific as Washington thwarts China’s challenge to global prominence, say analysts.
Mr. Trump returns to the White House on Monday because of the escalation of tensions in the South China Sea, which almost all of China has been at war with the US since Trump’s first term in office.
“There is a lot of momentum behind the deep US-Philippines alliance, and I am expect that to continue,” said Gregory B. Poling, one of the Southeast Asia program at the Center for Strategic and International Studies, via email.
“Nothing can change from military to military in Jan. 21… On the economic side, it will be important for the US to remain committed to Philippine projects, especially the Luzon Economic Corridor and the financing of the Philippines. semiconductor industry under the CHIPS Act,” he added.
The Luzon Economic Corridor, a project under the Indo-Pacific Economic Framework’s (IPEF) Partnership Global Infrastructure and Investment (PGI), aims to increase connectivity between Metro Manila, Batangas province, and two former US military bases – Subic and Clark.
It also targets other “high-impact” infrastructure such as ports and “strategic” investments including semiconductors, clean energy, and supply chains.
“These will be politically sensitive as President-elect Trump has criticized the CHIPS and PGI Act, but his administration should be made to understand how important it is to the US-Philippines relationship,” said Mr. Poling.
Under outgoing President Joseph R. Biden, the US has expanded its economic ties with the Philippines.
“We hope that the US-Philippines relationship will remain strong,” said the Executive Director of the American Chamber of the Philippines, Inc. (AmCham) Ebb Hinchliffe on Viber message.
He said the business unit has worked with US presidents of both parties – including Mr. Trump – “to strengthen economic relations between the US and the Philippines and to promote economic growth in both countries.”
“We will continue to do so under any president.”
Mr. Hinchcliffe said they are focused on the growth of the Philippines’ mining, infrastructure, manufacturing and transportation, agribusiness, tourism and creative industries.
“We also support the development of the Luzon Economic Corridor and hope to see continued progress in this important relationship between the US, the Philippines and Japan,” he added.
The Philippines is placing its trust in the US government’s “participation” plan, said the Director General of the Philippine Economic Zone Authority (PEZA), Teresa O. Panga, citing the trade policy announcements of Mr.
Mr Panga said Mr. Trump wants to continue to move America away from China. Mr. Trump has threatened to raise tariffs on imports from China, as well as other countries.
“Due to our status as one of the most efficient economies in the region, the government can position the Philippines as a cost-effective alternative to offshore production/fishing for American and other international companies that are moving production away from China, Vietnam. or Mexico,” he said.
Despite the tariff threats, the Philippines sees “promising” cooperation with the US under the Trump administration and Manila is its oldest ally in the Indo-Pacific and “given our strong trade and investment relations,” Mr Panga said.
“Another compelling factor is the Philippines’ strategic location in the region, making it an important hub for trade, investment, and goods.”
The Philippine Statistics Authority said earlier this month that the US was the largest destination for Philippine exports in November 2024, worth $969.09 million in total.
Washington is also the fifth largest source of Philippine imports at $621.30 million in November.
Currently, PEZA is home to 482 electronic manufacturing services and semiconductor manufacturing companies (EMS-SMS) that provide critical backend support to their main customers in the US, said Mr. Panga.
“Most of these are old American businesses (registered businesses) that have made the Philippines their manufacturing base in the region.”
He noted that many of these companies received support from the CHIPS Act’s International Technology Security and Innovation Fund to “improve the host country’s electronics manufacturing capacity and supply chain sustainability.”
Considering the CHIPS Act, the bipartisan legislation that is the cornerstone of the Biden administration’s industrial policy, Mr. Panga said the US and the Philippines will continue to prioritize “infrastructure development, clean energy, and semiconductor supply chains.”
“We are expected to focus on technology and other areas of cooperation such as Artificial Intelligence, Advanced Manufacturing, Agriculture, Green Ores Processing, Workforce Development, Disaster Prevention, Digital transformation, and maritime security,” he added.
The stability of the South China Sea and the broader Indo-Pacific region amid China’s expansionist agenda has been at the heart of Philippine-US relations in recent years.
Washington, which has a mutual defense agreement with Manila, has been at the forefront of China’s international encroachment on the Philippines’ exclusive economic zone (EEZ) in the South China Sea.
Mr. Marcos, speaking before the Australian parliament last year, said that the Philippines was on the brink of a peace war in the region.
“President Marcos can make a legitimate case that the Philippines has been at the forefront of China’s challenge to America,” said Raymond M. Powell, a fellow at the Gordian Knot Center for National Security Innovation at Stanford University. commenting that Beijing’s goal is to exclude the US from East Asia.
“Xi wants to make China good at America’s expense, while the Philippines shares common interests with America in keeping East Asia free as successful and independent allies of the US,” he added in an email.
The chief executive of Mr. Trump, Florida Senator Marco Antonio Rubio, last week warned China to stop “contaminating” the Philippines and Taiwan, noting that Washington will maintain its defense commitments to Manila and Taiwan.
Mr. Powell said Mr. Marcos would go on to make the case that the US and the Philippines both have common interests in developing economic markets that are “free from exploitation and abuse.”
“The economic prosperity and security of the Philippines gives the US leverage against Beijing’s plans to displace America as an Asian powerhouse,” he said.
Noting that Mr. Trump is a leader based on interests, Mr. Powell said Mr. Marcos “will win the debate until he convinces him that the interests of the US and the Philippines are aligned.”
“I don’t see any major threats to this alliance in the near future, other than China,” said Mr. Poling.
“Therefore, the most important thing will be to continue to deepen the alliance’s management and emergency planning, and for both governments to reaffirm their commitments to abide by the alliance’s commitments,” he added.
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