Philippines’ ‘China-free’ manufacturing strategy is a high-risk bet
Por Richard Heydarian — South China Morning Post – News feed
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Opinion Richard Heydarian Philippines’ ‘China-free’ manufacturing strategy is a high-risk bet
Despite support and progress on the Luzon Economic Corridor and Pax Silica initiatives, Manila faces many challenges and much competition
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Richard Heydarian Richard Javad Heydarian is an Asia-based academic, currently a Professorial Chairholder in Geopolitics at the Polytechnic University of the Philippines. Published: 9:30am, 17 Oct 2026 China and the Philippines recently traded accusations over the medical evacuation of a Philippine serviceman from a grounded naval vessel in the hotly disputed Second Thomas Shoal in the South China Sea. The incident has sparked renewed worries about potential armed skirmishes in a global artery of trade. But Philippine President Ferdinand Marcos Jnr was also quick to emphasise the economic dimensions of a major conflict. After a decade of rapid economic growth, the Philippines is facing potential “stagflation” due to multiple headwinds. Both the ill-conceived US war on Iran and the domestic flood-control corruption scandal , which has hobbled infrastructure projects across the Philippines, have hammered the nation’s economy. Reeling from record low approval ratings, Marcos is doubling down on attracting multibillion-dollar investments from traditional partners. In particular, he is betting on the newly launched Luzon Economic Corridor , which has Japanese and European support, and the US-led Pax Silica initiative . US President Donald Trump is expected to sign a framework agreement for Pax Silica during a visit to Manila next month. Select Voice Select Speed 0.8x 0.9x 1.0x 1.1x 1.2x 1.5x 1.75x 00:00 00:00 1x AI-generated voice
