Philippines At Odds Between Chinese Investment and Maritime Security

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Due to the considerably high expenditure involved in weapons upgrade, venturing into the Subic shipyard will need a great deal of money which the government cannot provide at the moment.

during the start of 2019, the Philippine government is faced with a dilemma that goes beyond the plight of 3,000 Filipino workers who were laid-off. The South Korean ship-building firm is in dire straits. It currently owes creditors around $1.3 billion of which $400 million of is to be paid to Philippine banks.

With a void to be filled, Manila is looking for an entity to replace the South Korean company. Among the outfits that have shown interest are those coming from Japan, Korea Turkey, Europe the US and China. Although the government is seeking a Filipino entity to assume the venture, it is the Chinese who are emerging as the leading player to acquire Hanjin’s stake.

Meanwhile, the Philippine Navy is also interested to take over the HHI undertaking. The Philippine President Rodrigo Duterte and Defense Secretary Delfin Lorenzana want to strengthen the sea-faring capability of the nation.

 

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