The enemy of my enemy?

  Seems we may be the unexpected benefactor of the ongoing spat between China and Japan, over, what else, another group of islands! Recently, the Japanese government purchased the Senkaku islands (the Chinese call it Diaoyu) from a registered Japanese owner, angering Beijing. The whole “we own all the islands in the East, West, North and South China Seas” has once again come into play. Protests aimed at Japanese interests in China have become more frequent, more violent and more organized, prompting these Japanese firms to shut down their operations, even thinking of relocating their business interests elsewhere. Somewhere safer. Somewhere close. Somewhere they have very good relations with. You get it, right? Why should they risk their businesses and their people in a country they are clearly at odds with?

 Indeed, the Philippine government has been enticing these Japanese companies and corporations to come to the country and set up shop, offering all kinds of incentives for them to do so. We do have a very good relationship with Japan, both political and in trade, so the move here would be good for the economy, provide jobs and make the Philippines a key player in the world market. So while both juggernauts go on with the rhetoric, we would do well to take advantage of the situation and see the silver lining in all these territorial disputes!

 The rhetoric has become harsher, with warnings all round. Both countries have powerful militaries, which is probably the reason why China’s actions are not as heavy-handed as their dealings with us in Scarborough Shoal! They haven’t sent any of their larger ships into the waters of these islands, knowing very well that Japan can and will respond accordingly. To make matters more complicated, Taiwan has thrown its hat into the fray, exchanging water cannon fire with Japanese coast guards vessels! Let’s hope they keep on using water!

We can only hope that the Japanese companies do consider the Philippines as their new base of operations. But as I have written before, the issue of power must be addressed. We have one of the most expensive power rates in Asia, if not the world! Companies will need more than tax breaks and other incentives before they make the move. They have to know if they can sustain their operations with the cost of power here. Right now, it looks like we can benefit from the ongoing spats, even as we try to mend our own fences with China. But I really do have to ask. Does China want to have all these antagonistic countries around it? They seem to be picking fights left and right, creating unexpected alliances. Alliances that may prove to be detrimental for them in the long run.