China’s Investments in the Philippines: A Growing Influence Through Big-Ticket Projects

The Philippines has seen a significant surge in Chinese investments, with billions flowing into the country’s infrastructure and key industries, placing the nation at the heart of China’s broader regional ambitions. From bridges and highways to energy and telecommunications, the Chinese government, through its Belt and Road Initiative (BRI), has made the Philippines a critical partner in its quest for greater economic and geopolitical influence across Southeast Asia.

The infrastructure build-up spearheaded by Chinese-backed projects is one of the most visible signs of this burgeoning relationship. Major projects, such as the Davao River Bridge, worth $56 million, and the Davao Coastal Road Project, valued at $610 million, are expected to transform the local transportation landscape by improving access and connectivity in the region. While these projects have been delayed, primarily due to the COVID-19 pandemic, they are back on track with completion expected by 2025.

At the same time, China has remained a dominant force in the Philippines’ energy sector. For example, the Binondo-Intramuros Bridge, completed in 2022 with $96 million in Chinese grants, exemplifies the significant economic contributions China has made, which now position the country as the Philippines’ largest trading partner and a major source of foreign direct investment (FDI). Between 2016 and 2022, Chinese and Hong Kong-based firms invested a substantial $1.7 billion in the Philippines, positioning China second only to Japan in terms of FDI​(
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While the Philippine government welcomes this influx of Chinese capital, not all projects have proceeded smoothly. The $1.48-billion Mindanao Railway Project, initially set to connect several key cities across the region, has been stalled due to complex loan negotiations and challenges with land acquisitions. Despite this, the momentum behind the “Build, Build, Build” initiative continues, with China remaining at the forefront of many of the country’s development efforts.

As the Philippines embraces these large-scale investments, questions remain about the long-term consequences of this growing dependence on Chinese capital. While the economic benefits are clear, the geopolitical implications of such deep financial ties will likely shape the future of Philippine-China relations for years to come. The increasing entanglement of Chinese investments in the Philippines reflects the broader regional strategy where economic ties are carefully crafted to bolster political influence.

In the coming years, the true impact of China’s investments will be felt not only in the economy but in the political and strategic calculus of both nations. As these projects move forward, the Philippines must navigate this complex relationship, balancing economic gains with national sovereignty and regional security​

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