Manila’s visa rules to combat fraud are hindering legitimate Chinese businesses, affecting the local economy and increasing Sinophobia.
The Chinese community in the Philippines is grappling with the effects of Manila’s strict new visa restrictions, a policy designed to combat immigration fraud and other illegal activities but which are also impacting legitimate businesses.
Observers say the government’s crackdown has inadvertently ensnared Chinese traders with long-standing ties to the country, creating hurdles for law-abiding entrepreneurs and affecting sectors vital to the local economy.
Wilson Lee Flores, a political-economic analyst and honorary chairman of the Anvil Business Club in Manila, said that several Chinese-Filipino businessmen are struggling to secure visas for their factory and shop workers from the Philippine Embassy in Beijing.
“All visa applicants from China coming to the Philippines are having a hard time. No approvals … no quota … nothing,” Flores told This Week in Asia.
I mentioned to my friend, the Philippine ambassador in Beijing, that my friend owns a noodle factory and has a technician ready, but the new machine from China can’t be operated without him, the situation is “very bad for both countries”, Flores said.
In May, the Philippine Department of Foreign Affairs tightened visa policies to address fraudulent applications that have caused illegal entries and overstays. This includes closer scrutiny of applications from high-risk countries and better collaboration with immigration authorities to verify supporting documents.
The new measure came after the National Security Council last month dispatched a team to investigate Tuguegarao, capital of Cagayan – on the northern tip of Luzon island facing Taiwan – where some 4,600 Chinese nationals were enrolled in private universities.
The policy was also a response to investigations into offshore gaming operations, predominantly run by Chinese nationals, which were linked to criminal activities such as human trafficking and financial scams. In July, President Ferdinand Marcos, Jnr banned these operations to curb their associated crimes and mitigate national security risks.
Dr Antonio Avila, political economist and vice-president of Political Economic Elemental Researchers and Strategists think tank, told This Week in Asia that the policy has negatively affected legitimate Chinese traders with long-standing business relationships.
These traders play a crucial role in the local economy, particularly in wholesale, retail, and importing goods like electronics and machinery, Avila said, adding that while the policy aims to tackle illegal immigration and national security, it unintentionally creates a hostile environment for law-abiding Chinese entrepreneurs.
The challenge lies in balancing security measures with ensuring that legitimate economic partnerships remain unaffected
Dr Antonio Avila, political economist
“Outright denials impede legitimate traders’ ability to manage supply chains and maintain business continuity. Due to reduced trading activity, regions dependent on Chinese trade, such as Binondo in Manila, suffer economic slowdowns,” he said.
Avila cited that these stricter controls might deter new investors, slowing economic growth and competitiveness in industries reliant on Chinese goods and capital.
“The challenge lies in balancing security measures with ensuring that legitimate economic partnerships remain unaffected,” he explained.
Currently, China has competing claims in the South China Sea, not only with the Philippines but also with Malaysia, Brunei, and Vietnam.
Recently, Beijing has been accused of using aggressive tactics against Philippine ships, including firing water cannons and using high-intensity lasers, in a bid to assert its territorial claims in the disputed waters.
In 2016, an arbitration tribunal in The Hague ruled in favour of the Philippines’ territorial claims, stating China’s broad claims over the waters had no legal basis. However, Beijing has consistently rejected and denounced this ruling as illegitimate.
