Panganiban, Janiña Maria L.

Section I

When BBB meets the BRI: Corporate Sustainability through Hybridity

In its grandest scheme, globalization is identified to be a global catalyst for economic

interrelation, development, and sustainability. Contributing to globalization scene and scheme is

China, an economic giant, with the vision of increasing its connectivity with other nations and

instilling a symbol of friendship, trade exchange and cultural exchanges with other countries

through the implementation of its ambitious “Belt and Road Initiative” or the BRI (Aguinaldo).

The economic giant plans to expand to other nations by investing $ 5 trillion in the operations of

the world economy, covering 64 nations across four continents—the areas of Asia, Australia,

Africa, and Europe—which accounts for 62% of the world populace (Manhit). Adhering to the

United Nations Development Programme’s (UNDP) 2030 Agenda for Sustainable Development

and Sustainable Development Goals (SDGs), the BRI further catalyzes mutual global

improvements and sustainability for developing countries (“Belt and Road Initiative”). This

global initiative for “complex interdependence” among nations greatly aims for infrastructure

development wherein geopolitical, operational, and financial progress is deemed to be rooted

from. In other words, with the notion of global connections and mutual progress, China’s BRI is

believed to strive for corporate global sustainability through hybridity.

Corporate Sustainability is defined as the concern of investors to meet the needs of our

society today without exhausting the ability of the future generation to meet theirs. Corporations

which are influenced by globalization advocates for sustainability in three various aspects or

pillars: social, environmental, and economic (Beattie); in broader terms, these so-called pillars

are referred to as geopolitical, operational, and financial aspects respectively.

 With the hopes of incorporating corporate sustainability in our nation, the Philippines, as

a developing country, unveiled a business paradigm referred to as the “Build, Build, Build”

(BBB) program which seeks to commence the “Golden Age of infrastructure” in the country.

The government believes that this program would stimulate the enduring economic development

of the country, with the vision of a booming increase from 2.9% to 7.3% in our national GDP

through the construction of infrastructures (“Build! Build! Build! Program”). The Organization

for Economic Cooperation and Development (OECD) affirms this vision by stating that

investments in infrastructure promotes economic growth, alleviates poverty, and improves living

conditions. Infrastructures also manifests high network, physical connectivity which is necessary

to accelerate economic integration in the area of trade and investment (Battacharyay). This

integration through infrastructure is what the Philippines need and is what China provides

(Bello); therefore, Philippine’s synergy with China’s BRI would provide it with adjacent

business activities with corresponding gains and downsides. In the context of globalization, we

could open our doors to the possibility of connections and growth—the BBB meets the BRI.

According to the Philippine News Agency, the Philippines and China had already

expressed interests in becoming partners. In line with this, the Philippine Department of Finance

declares that Chinese President Xi Jinping had already pledged a total of $7.34 billion in

investments. With the Sino-Philippine economic relationship breaking forth, adjacent and

beneficial activities would emerge in country and would be evident in geopolitical, operational,

and financial aspects of globalization.

The geopolitics of business are important in crafting strategic expansion plans for global

trade. Complying with this vision for trade and economic relations, the Philippines and China

had signed the Six Year Development Program (SYDP). This program aims to strengthen
bilateral cooperation in infrastructure, trade, and commerce. The objectives of this program are

made more apparent with China being the Philippines’ largest trading partner in early 2017,

marking a 16% increase on investments since 2016 (Rabena). In exchange for China’s

investments in our country, the Philippines is deemed to be part of the BRI’s Maritime Silk

Road. This would enable China to further dominate the international maritime trade scene,

bearing the fact that it is one of the world’s biggest exporters (Estrada). Similarly, the Philippines

could use this connection to gain access for future exports, in the form of agricultural products,

to other nations. Therefore, Through the BRI, the mutual benefits from trade is sustained.

After establishing global connections, operational activities among businesses are

executed. Operational activities may include job opportunities for Philippine local workers. The

BRI seeks to improve the division of labor and distribution of industrial chains in the country;

hence, China shall bring Chinese companies to various countries to boost local employment in

those countries (Estrada). The increase in commitments to global trade and infrastructure will

help sustain and boost productivity and reduce unemployment levels in the impoverished regions

in the world (“Decent Work and Economic Growth”).

Lastly, for the continuity of the corporate ventures of the businesses, it is important that

these corporations remain financially stable. Thus, the BRI remains as an important contributor

to the financial aspect of the businesses in the Philippines simply because it may provide

financial support to our local corporations. To align with this notion, the Philippine Central Bank

approved the Peso-Yuan spot market which would reduce the transaction costs for Philippine-

Chinses banks and businesses (Lucas). Moreover, the issuance of “Panda Bonds” would grant

the Philippines financial assistance from China as it constructs the infrastructures in its BBB
program (Tubayan). Again, through China’s assistance, the efforts and aims of the BBB are to

be sustained.

Despite all these beneficial adjacent activities, the BRI also imposes several downsides to

our economy as well—policy barriers slow down trade (geopolitics), risks are deemed to occur

in infrastructure projects (operational), and debt diplomacy or debt trap impedes the economic

stability of our nation (financial). It appears that between China and the Philippines, there is no

mutual and equal benefit—in terms of global trade and economy, there is a concentration of

power in China wherein China appears to be the “puppeteer” and the other countries are

considered as its “puppets”. Herrero claims in an article that China intentionally brings

infrastructures to developing countries. In the event of unpayable debt, the developing country

would then be obliged to surrender majority of its resources to China; thus, China would gain

sovereignty over the country, suggesting a probable scenario of economic imperialism. This

notion further implies that the absence of mutual benefit in a global scale prohibits mutual

corporate sustainability in the world stage. Solutions to these issues, however, can be resolved

through Jaimey Hamilton’s immaterial or symbolic art in the form of two key concepts—

hybridity and delay.

Geopolitics in the BRI scheme had created delays in trade because of the policies on

crossing borders and customs procedures. Trade is deemed to be faster in G7 countries which

include France, Canada, Germany, Italy, Japan, the US, and the UK (Ruta). Hence, it would be

advisable for the Philippines to establish economic relations with the other G7 countries to

mobilize its import to other nations. To sustain the effectivity of trade and to be able to export

more volumes of goods, it is important to have faster transactions as much as possible.

 Despite the jobs created by the such trade operations, other operational activities aligned

with China could also impose ill effects—the invasion of Chinese workers imposes a threat to

the employment of our local laborers. The Department of Labor and Employment presents that at

least 53, 311 alien employment permits (AEPs) are granted to Chinese workers from 2016 to

2018 (Robles). Senator Joel Villanueva further insists that there is an influx in the number of

Chinese illegal workers in the country. To resolve this issue, the Philippines could allow a

variety of foreign investors to enter the Philippine economy which would allow the sustenance of

employment of local Filipino workers.

For all the trade and economic operations to transpire, financing is required. The BRI

may place developing countries in a debt-trap which would allow China to gain land and

resource ownership in Philippine soil (Cigaral). Thus, to avoid debt-trap, the Philippines can

resort to a Hybrid Public-Private Partnership (PPP) wherein local hybridity takes place. The

government funds and builds a project and transfers it to a private sector for future maintenance,

operations, and marketing (Hybrid PPP). Transferring the projects to private sectors would lessen

the government’s financial burden of operating businesses. Hence, the Hybrid PPP would sustain

the construction of infrastructures of BBB program and the financial health of the corporations or

private sectors.

To reduce the concentration of power in China, the Philippines shall not be economically

tied to China alone. From the initial economic focus of the BRI through establishing trade

connections, there seems to be a hidden agenda—the connections and pathways established also

serves as gateways of opportunity for China to exploit and control other nations (Herrero). This

concentration of power inhibits corporate sustainability among nations. Hence, corporate

hybridity must further take place—the Philippines shall negotiate with other “big powers” such
as the US and Japan. It is in this instance where “delay” becomes good—negotiating with these

countries would therefore delay the possible self-serving motives of China in the BRI.

Furthermore, UNDP highlights the fact that allowing inclusivity helps bridge economic, social

and environmental gaps for sustainable development (“Inclusive sustainable growth”).

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