MANILA – Political analyst Richard Heydarian stressed the importance of adopting a “derisking” strategy to limit China’s influence over the Philippines’ critical infrastructure. Speaking at a forum in Quezon City on Saturday (01 Feb 2025), Heydarian emphasized that while completely severing ties with China is not feasible, the country must take steps to protect key industries from foreign control.

“Derisking” refers to implementing safeguards, not total decoupling, which would be unrealistic given China’s regional importance, said Heydarian. He outlined the need for specific protections in place, such as high fences and small yards, to prevent undue foreign dominance over critical sectors.

One example of this strategy is the Maharlika Investment Corp.’s (MIC) acquisition of a 20% stake in the National Grid Corp. of the Philippines (NGCP), partly owned by Synergy Grid and Development Philippines, Inc. (SGP), which holds a 40% stake.

Heydarian cautioned that this move, while positive, is still insufficient to fully mitigate the risk of Chinese control over vital infrastructure like the power grid.

“It’s not enough for our critical infrastructure to be largely managed by China,” he said, highlighting the growing concern over national security risks.

Heydarian also warned of the Philippines’ increasingly precarious position in the global geopolitical arena, likening it to “the new Berlin of the 21st century” due to its strategic location at the center of major power competition, particularly between China and the U.S.

He stressed the need for heightened vigilance against Chinese espionage, citing the ongoing investigation of Chinese nationals suspected of espionage in the Philippines.

Furthermore, Heydarian pointed to outdated laws, such as the country’s treason laws, which only apply during wartime and carry minimal penalties, as a significant weakness in countering foreign espionage activities.

“Our laws need updating,” he said. “If someone can be paid millions to spy, but the fine is only P10,000, that’s a deal anyone would take.”

In conclusion, Heydarian urged the Philippines to harness its geopolitical position wisely, turning what could be a curse into a strategic advantage through careful planning and effective safeguards.

ia/mnm