Observers: US Investments in Philippines Seen Easing Reliance on China

Taipei, Taiwan — During a trade mission visit to Manila this week, U.S. Commerce Secretary Gina Raimondo announced plans to invest more than $1 billion in the Philippines’ tech sector and help double the number of semiconductor factories in the country.

Observers say the pledge and visit highlight the Southeast Asian nation’s growing importance to Washington and will also help reduce the Philippine economy’s reliance on China.

“U.S. companies have realized that our chip supply chain is way too concentrated in just a few countries in the world,” Raimondo said in remarks at a business forum on Tuesday.

“Forget about geopolitics. Just at that level of concentration, you know the old adage, ‘Don’t put all your eggs in one basket.’ Why do we allow ourselves to be buying so many of our chips from one or two countries? That’s why we need to diversify,” Raimondo said.

American business executives from 22 businesses, including Alphabet’s Google, Visa and Microsoft, joined Raimondo on the trip.

Possible expansion of chip industry

JC Punongbayan, resident economist and columnist of the online news website Rappler.com, said that while the Philippines is one of the key centers in the global electronics industry chain, it does not yet have the ability to manufacture smartphone or computer chips. The Philippines currently has 13 semiconductor factories that focus on assembly, packaging and testing.

“This commitment by the U.S. government to boost the local semiconductor industry is a welcome development because right now, even if semiconductors have figured prominently in trade statistics, these are not high value-added. So basically, we import a lot of components and then export them after assembly and packaging,” Punongbayan told VOA’s Mandarin Service.

“Hopefully, these investments by the U.S. government and private sector partners will enable the Philippines to export higher value-added goods in the future,” he said.

Punongbayan believes that at a time when the Philippines is working hard to amend its regulations and hoping to attract more foreign direct investment, the promised investment from U.S. companies could provide a strong boost to the capital-starved country.

“We have had some difficulties when it comes to attracting foreign investments. And in fact, from 2020 to 2023, foreign direct investments dropped by more than 6% on an annual basis. So, we really need these investments in order to boost the economy,” Punongbayan said.

“And the billion-dollar investment pledge of the U.S. is several times the actual foreign direct investments that have come in recent years — in fact, almost nine times the foreign direct investment from the U.S. in 2023. These are very crucial to Philippine development,” he said.

During Raimondo’s two-day visit, U.S. companies committed to invest in the digital and energy sectors, areas that are in line with Manila’s overall development plans and will help the Philippines’ industrial upgrading and transformation, Punongbayan said.

Defense and economy

Dindo Manhit, president of the Stratbase ADR Institute for Strategic and International Studies, a policy think tank in the Philippines, said that over the years, the Philippines’ economic growth has been mainly driven by strong consumption.

These investment commitments by U.S. companies will accelerate local economic growth, Manhit said, benefiting both the public and private sectors and positively affecting areas such as the Philippines’ manufacturing supply chain and business process outsourcing.

He said these investments could also allow Manila to fully understand that strengthening its alliance with Washington will not only bring it defense assistance but also economic security.

“Because we all share values, democratic values. We value jobs for people. In the case of the Philippines, imagine if we can create jobs that could provide better income for Filipinos,” Manhit said. “Then we will see the strong partnership with the U.S. not limited to national security only, but also economic security.”

Washington’s pledges of economic support for the Philippines comes at a time of rising tensions between Manila and Beijing over sovereignty disputes in the South China Sea.

Earlier this month, Philippine Secretary of Foreign Affairs Enrique Manalo warned that Manila is facing severe “economic coercion” from China. He also said the Philippines relies heavily on trade relations with China and hopes to expand economic and trade connections with other countries, including establishing formal free trade agreement negotiations with the European Union as soon as possible.

Punongbayan said that despite the disputes in the South China Sea, Manila continues to import a large amount of goods from China, which is the largest source of the country’s trade deficit. That shows how difficult it is for the country to decouple its economy from China, and why it is imperative for Manila to lessen its dependence on Beijing.

Greater interest from the United States to invest in the Philippines is a step in the right direction, he said.

“If we import a lot from China, then indirectly we are boosting China’s economy at the same time. And of course, part of the revenues coming from these payments to China will go to the Chinese government,” Punongbayan said. “So indirectly, in a way, the Philippines is funding China’s incursions in the West Philippine Sea.”

Manhit, however, said compared with other Southeast Asian countries, the Philippine economy is not very dependent on China.

According to recent poll by Stratbase ADR Institute for Strategic and International Studies, the country Filipinos most want to maintain good economic relations with is the U.S., followed by Japan, while China ranks at the bottom.

He said the poll not only shows that China does not have as strong an economic influence on the Philippines as Beijing claims, but also that Filipinos are unanimously willing to expand economic cooperation with countries that share common democratic values, or values of human rights and the rule of law.

China Says US TikTok Vote Follows ‘Logic of a Bandit’

BEIJING — China on Thursday said the U.S. House of Representatives’ approval of a bill that would force TikTok to sever ties with its Chinese parent company or be banned in the United States follows “entirely the logic of a bandit.”

The short-video app has soared in popularity worldwide but its ownership by Chinese technology giant ByteDance — and alleged subservience to Beijing’s ruling Communist Party — has fueled concern in Western capitals.

On Wednesday, the U.S. House of Representatives overwhelmingly approved a bill that would force TikTok to divest from its parent company or face a nationwide ban.

The bill is yet to pass the Senate, where it is expected to face a tougher test to become law.

“The bill passed by the United States House of Representatives puts the United States on the opposite side of the principles of fair competition and international economic and trade rules,” foreign ministry spokesman Wang Wenbin told a regular press conference.

“If so-called reasons of national security can be used to arbitrarily suppress excellent companies from other countries, then there is no fairness and justice at all,” he said.

“When someone sees a good thing another person has and tries to take it for themself, this is entirely the logic of a bandit.

“The United States’ handling of the TikTok incident will allow the world to see more clearly whether the United States’ so-called rules and order are beneficial to the world, or whether they only serve the United States itself.”

 

 

Biden Keeps Israel Close, but Netanyahu Away

Washington — With increasingly frequent and vocal expressions of frustration, U.S. President Joe Biden appears to be distancing himself from Israeli Prime Minister Benjamin Netanyahu, who has vowed that international pressure will not prevent Israel from achieving “total victory” in its war against Hamas.

The rift is fueling speculation that the U.S. might restrict the supply of American weapons, particularly if Netanyahu moves to “finish the job” against Hamas in Rafah, where more than a million displaced Palestinians are sheltered.

Placing conditions on military aid would be Washington’s strongest leverage to affect Israel’s conduct of the war, which has killed more than 31,000 Palestinians according to Gaza’s health ministry.

While U.S. media have quoted anonymous administration sources saying they are considering that option, officially the White House has declined to “entertain hypotheticals.”

“The president has been very clear about our position on Rafah,” national security adviser Jake Sullivan said during Tuesday’s White House briefing. “A military operation in Rafah that does not protect civilians, that cuts off the main arteries of humanitarian assistance, and that places enormous pressure on the Israel-Egypt border, is not something that he can support.”

Biden himself was ambiguous about whether invading Rafah would cross a red line, saying he would never abandon Israel. At the same time, he rebuked the Netanyahu government for the way it has gone after Hamas following the militant group’s Oct. 7 attack that killed 1,200 people in Israel and took more than 240 hostage.

“The defense of Israel is still critical, so there’s no red line [where] I’m going to cut off all weapons, so they don’t have the Iron Dome to protect them,” he said in a recent interview with MSNBC, even as he underscored that Israel “cannot have 30,000 more Palestinians dead.”

However, the president is telegraphing his rebukes. Caught on a hot mic while speaking to a Democratic senator last week, Biden said that he has told Netanyahu they are heading for a “come to Jesus” meeting, an expression for having a blunt conversation.

Told by an aide that he could be heard, Biden said, “Good. That’s good.”

Electoral goals

Biden’s increasingly public criticism of Netanyahu comes as he ramps up his campaign for reelection in November. The president faces competing constituencies within his Democratic base.

He cannot afford to give Republicans an opportunity to capture pro-Israel votes. But he also needs to stop progressive Democrats, young voters, Muslim and Arab Americans from abandoning him, as threatened by the significant portion of voters in some Democratic primaries who marked their ballots “uncommitted” to signal their outrage at the president’s support for Israel.

To address his domestic politics and foreign policy goals, Biden is “performing a political amputation of Bibi,” said Laura Blumenfeld, a senior fellow at Johns Hopkins School for Advanced International Studies, using a nickname for Netanyahu.

The goal, Blumenfeld told VOA, is to separate what Biden considers Netanyahu’s “toxic war policies” from the state of Israel so that the president can follow his political instincts: to protect Israel from further attacks and facilitate the release of hostages “without sacrificing his moral core.”

Biden’s souring on Netanyahu may not be enough to appease pro-Palestinian Americans, particularly if a cease-fire isn’t secured soon. “Uncommitted” voters say they would abandon the president even when Biden surrogates point out that the Republican presumptive nominee, Donald Trump, known for his anti-Muslim rhetoric and policies, is likely to give Israel freer rein over its war conduct.

“I’ve lived through four years of Trump,” said Samraa Luqman, co-chair of the Abandon Biden campaign in Michigan. Palestinians, she told VOA, “cannot live through another Joe Biden presidency.”

Trump has avoided stating an explicit position on the war other than saying in a Fox News interview that Israel must “finish the problem” and that the “horrible invasion” by Hamas “would have never happened” if he were president.

Netanyahu hits back

In response to Biden’s criticism that Netanyahu is “hurting Israel more than helping Israel,” the prime minister hit back, saying in an interview with Politico that he has the support of the Israeli people.

If Biden meant “that I’m pursuing private policies against the majority, the wish of the majority of Israelis, and that this is hurting the interests of Israel, then he’s wrong on both counts,” Netanyahu said.

Only 15% of Israelis want Netanyahu to stay in office after the war ends, according to a poll by Israel Democracy Institute. But 56% believe that continuing the military offensive is the best way to recover the hostages.

In general, Israelis are focused on toppling Hamas, said Jonathan Rynhold, head of the Department of Political Studies at Israel’s Bar-Ilan University. To them, protecting civilians and providing humanitarian aid are “details,” he told VOA. “They don’t understand the significance in America.”

Distrust in Netanyahu

Earlier this week, an annual threat assessment released by the U.S. Office of the Director of National Intelligence (ODNI) cited deepening “distrust of Netanyahu’s ability to rule” since the war broke. The prime minister’s “viability as leader” may be in jeopardy, the report said.

“It’s clear that the U.S. administration is going after Netanyahu,” said Nimrod Goren, senior fellow for Israeli Affairs at the Middle East Institute.

As the process toward a political transition in Israel begins, Goren told VOA, the U.S. “is an actor in it.”

The ODNI report noted that “a different, more moderate government is a possibility,” drawing ire from Israeli officials who felt snubbed earlier this month when Israeli war Cabinet member Benny Gantz was received by Vice President Kamala Harris, Sullivan and Democratic congressional leaders.

Many see Gantz’s invitation to Washington as a sign of the administration’s support, should the popular centrist politician become Israel’s next prime minister.

Asked by VOA if Gantz’s visit is a signal that the administration is looking forward to an Israeli government without Netanyahu, national security communications adviser John Kirby flatly said, “No.”

Biden Talks About Roads, Bridges, While Protesters Shout About Death in Gaza

Milwaukee, Wisconsin — U.S. President Joe Biden on Wednesday visited Wisconsin, a key swing state that he narrowly won in 2020, meeting with community members at a once shuttered but now thriving children’s community center to sell them on how he believes his economic policies are making their lives better.

Biden’s approval ratings in the Badger State have recently slumped, and on Wednesday afternoon, as Biden chatted privately with campaign volunteers at his new campaign headquarters in Milwaukee, less than a block away, several dozen protesters took aim at one reason why.

“Free, free, free Palestine!” the group members yelled as they waved Palestinian flags.

“Hey, Joe, what do you say, how many kids did you kill today,” they also shouted.

Inside the White House’s carefully managed events on Wednesday, the scene was different. Biden announced $3.3 billion in initiatives aimed at fixing transportation and infrastructure. He did not, during his public remarks, mention Gaza or any foreign policy issues.

“Everything we’re doing is connecting people with opportunity, not disconnecting people from opportunity,” Biden said, speaking at a community sports center that was shuttered during the pandemic but has since reopened.

“These projects will increase access to health care, schools, jobs, and will strengthen communities by covering highways with public spaces, creating new transit routes, adding sidewalks, bridges, bike lanes and more,” press secretary Karine Jean-Pierre said to reporters aboard Air Force One.

The White House referred questions to the campaign when asked if Biden would meet with any Arab Americans in Wisconsin or Michigan, where he heads Thursday.

VOA asked Ben Wikler, chairman of the Democratic Party of Wisconsin, whether Biden had met — or would meet — with any concerned parties about the situation in Gaza.

“President Biden believes that every person’s life is profoundly valuable,” he replied. “From Palestine, Israel and around the world. He’s working to move forward towards a just and peaceful enduring solution, as he said in the State of the Union address. And that is the thing that will make the biggest difference for the profound feelings that people have about this crisis.”

The two main political contenders are taking a very different approach in this Midwestern state.

Biden said success in a closely contested state like Wisconsin “comes down to knocking on doors.”

On Wednesday, he lingered inside his new Wisconsin campaign headquarters — in the largest city, Milwaukee — where he met with Democratic volunteers behind closed doors for more than an hour.

Meanwhile, supporters of Biden rival Donald Trump this week submitted petitions in Wisconsin to force a recall election against the state’s top Republican, who refused calls to decertify Biden’s legitimate, narrow win in 2020.

When asked if the Biden campaign had faith in the state’s election process, Wikler was emphatic.

“Wisconsin has consistently been rated as among the best states in the country when it comes to administering elections,” he said. “That system allows us to have elections up and down the ballot where voters can trust the outcome.”

‘Man in Iron Lung’ Dead at 78

Washington — A polio survivor known as the “man in the iron lung” has died aged 78, according to his family and a fundraising website.

Paul Alexander of Dallas, Texas contracted polio at the age of six, leaving him paralyzed from the neck down and reliant on a mechanical respirator to breathe for much of the time.

Though often confined to his submarine-like cylinder, he excelled in his studies, earned a law degree, worked in the legal field and wrote a book.

“With a heavy heart I need to say my brother passed last night,” Philip Alexander posted on Facebook early Wednesday. “It was an honor to be part of someone’s life who was as admired as he was.”

Christopher Ulmer, a disability advocate running a fundraiser for Alexander, also confirmed his death in a GoFundMe update posted on Tuesday.

“His story traveled wide and far, positively influencing people around the world. Paul was an incredible role model that will continue to be remembered,” said Ulmer.

A prior update on Alexander’s official TikTok account said he had been rushed to the emergency room after contracting Covid-19.

Iron lungs are sealed chambers fitted with pumps. Raising and lowering the pressure inside the chamber expands and contracts the patient’s lungs.

Invented in the 1920s, their use fell away after the invention of the polio vaccine by Jonas Salk, which became widely available in 1955 and helped consign the devastating paralytic illness to history.

Alexander held the official Guinness World Record for time spent in a lung.

According to his Guinness page, he was able to leave the device for periods of time after he learned to “frog breathe” with the help of a physical therapist.

This involved “using his throat muscles to force air into his lungs, gulping down air one mouthful at a time.” Eventually, he only returned to his iron lung at night to sleep.

As a practicing lawyer, he was able to represent clients in court in a special wheelchair that held his paralyzed body upright.

Seventy-five-year-old Martha Lillard of Shawnee, Oklahoma is reportedly the last surviving person in an iron lung. 

US Sanctions 3 for Organizing Bosnian Serb ‘National Day’

Washington — The U.S. Treasury Department unveiled sanctions Wednesday against three individuals for undermining the “peace and stability of Bosnia and Herzegovina” by helping to organize an “unconstitutional” celebration of Bosnian Serb identity.

Bosnia has long been governed by a dysfunctional administrative system created under an agreement known as the Dayton pact that divides the country into two bodies — a Muslim-Croat federation and a Bosnian entity known as Republika Srpska (RS). 

The two entities are guaranteed a large degree of autonomy and connected by a weak central government.

The three individuals sanctioned on Wednesday were involved in “executing and organizing the commemoration of ‘Republika Srpska Day'” in the RS region on January 9, the Treasury Department said in a statement. 

This event occurred “in defiance” of a ruling by the country’s constitutional court, which found it to be “unconstitutional” because it prioritized only Serb people, and thus violated “the constitutional obligation of non-discrimination.”

“The United States is deeply concerned about the continued attempts to undermine the Dayton Peace Accords and the Bosnia and Herzegovina Constitution, two critical institutions that have been instrumental to peace and stability in the region,” U.S. Treasury under secretary for terrorism and financial intelligence Brian Nelson said in a statement. 

“We will continue to hold to account those who seek to sow division to achieve their own political aims at the expense of the people of Bosnia and Herzegovina,” he added. 

The U.S. announcement follows a similar decision by the U.K. authorities on January 15 to sanction a marketing agency involved in organizing the event. 

The “Republika Srpska Day” events were marked as a public holiday and saw some 3,000 people march in a parade in Banja Luka, the RS administrative center.

Bosnian Serb President Milorad Dodik attended the event with other RS officials and Russia’s ambassador to Bosnia.