In a recent forum held in Quezon City, political analyst Richard Heydarian emphasized the importance of implementing a ‘derisking’ strategy to safeguard the Philippines’ critical infrastructure from excessive Chinese control. Heydarian explained that while completely severing ties with China, or ‘decoupling’, is impractical due to the country’s significant role and proximity, a more nuanced approach is necessary.
Heydarian described derisking as setting ‘high fences with small yards’, indicating targeted and clear protective measures. He referenced the recent move by the Maharlika Investment Corp. (MIC) to acquire a 20% stake in the National Grid Corp. of the Philippines (NGCP), which is partially owned by Synergy Grid and Development Philippines, Inc. (SGP). Heydarian suggested that while this move dilutes the private sector’s control, it is insufficient to fully mitigate risks associated with Chinese influence.
He stressed the need for derisking to prevent the Philippines’ critical infrastructure from being predominantly managed by foreign entities, particularly China. The MIC’s acquisition is expected to enhance the government’s oversight of the nation’s power grid operations.
Heydarian also highlighted the geopolitical tensions surrounding the Philippines, describing the country as the ‘new Berlin of the 21st century’. He pointed out that the Philippines is at the center of great power competition, with China aiming to dominate both the first and second island chains.
Furthermore, Heydarian raised concerns about the presence of Chinese espionage in the Philippines, facilitated by outdated laws. He noted that the country’s treason laws, which only apply during wartime and impose minimal fines, make it an attractive environment for foreign spies. He urged the Philippines to update its laws and leverage its strategic position to turn its geographical challenges into advantages.