The Market Monitor Minding the Nation's Business
By Chito Lozada
Last of two parts
Many considers the current phase of uninterrupted progress in China as the bold new world of money, in which capital moves unceasingly everywhere in the country.
The country’s economic boom, which has been without letup since the 1980s, is spilling towards its neighbors and the Philippines is expected to be one of its major beneficiaries.
China’s economic outreach is also a necessity since the growing affluence of its more than 1 billion population means huge demands for almost all products.
China is banking on its initiative, the one-belt, one-road (OBOR) to provide a window for the Asian giant to cooperate economically with its neighbors.
It also sees to use the project to fill the leadership vacuum in the region and the huge shift in American policy brought about by the largely inward-looking administration of President Donald Trump.
China’s One-Belt, One-Road (OBOR) initiative seeks to reach out to its Asian neighbors and at the same time showcase the country’s technological advances.
Technology firm Guangzhou Leafun Cultural Science and Technology and Co. Ltd, for instance, recently showcased its exhibition platform using hologram technology.
The company, founded in 1997, focuses on digital media technology, has 366 patents on its products and provides services to many theater facilities such as the China National Theater, Singapore Multifunctional Center, and the Shangha Tech in China.
Most of the emerging technology companies jealously guard their research results and development initiatives.
Leafun said it has now the most advanced hologram technology in the world that has several applications including for politics, entertainment and other services using virtual reality.
Imagine a national candidate being able to broadcast to different areas through hologram simultaneously.
Leafun provided members of Filipino media who visited China recently a hologram show of famous South Korean pop singer Psy in which it appeared that he was singing right in front of the unbelieving audience.
A hologram has its advantage compared to a live performance since special effects are integrated with the performer that is not possible through a live performance.
Prosperous China seeks partners
The Chinese government and private companies are looking for partners to put in their capital, and the Philippines is expected to be a major beneficiary with provinces like Guangdong and Hainan which are the nearest to the country ready to provide not only financial but technology assistance.
Officials of both provinces, for instance, have stressed the proximity of the Philippines to them underlined by the fact the progressive provinces are nearer to Manila rather than Beijing, which are the seat of powers of both countries.
An easing of tension will result in greater exchanges of people that would also benefit the tourism sectors of both countries.
Guangdong, a province with a population almost similar to the Philippines, has a gross domestic product of $1.2 trillion in 2016 which is four times that of the Philippines’ GDP.
Guangdong, which is among the most progressive Chinese provinces, expect an increase in economic activities between the province and the Philippines as a result of the Belt and Road Initiative.
Its capital Shenzhen has a lot to offer to the country’s effort to industrialize.
Shenzhen deputy director general Yao Weizhi said during a recent briefing of Filipino journalists that at the moment the Philippines corner $5.2 billion or about 10 percent of the total $50 billion trade the province had with the Association of Southeast Asian Nations (Asean) last year.
Yao said the figure should be more considering the proximity of the Philippines to Guangdong, where the distance between its capital Shenzhen and Manila is closer compared to Shenzhen and the Chinese capital Beijing.
Yao said Shenzhen has been a model for the open economy policy of China that had resulted in the swift development of the mainland’s economy.
Yao said the city has become China’s center for the financial industry, logistics services, culture and creative industries, and high technology industries on robotics and space development.
Huawei, the third largest telecommunications service developer after American firm Apple and South Korea’s Samsung is found in Shenzhen.
The company plans to participate in the auction for the government’s National Broadband Network (NBN) plan.
China’s growth engine
Shenzhen posted an economic growth rate of 8.9 percent last year which was faster than the 6.9 percent gross domestic product (GDP) expansion for the whole of China.
It also serves as the prime showcase of China’s reform, opening up and modernization drive.
While Shenzhen City was founded in 1979, the Shenzhen Economic Zone was established in 1980.
Shenzhen is a city that was built up by immigrants with at least 95 percent of its residents coming from other parts of China and other countries.
It is likewise China’s technology hub with more than 2,000 technology companies located in the city.
Shenzhen ranked fourth in economic activities among China’s bustling cities.
Nearer the Philippines is Hainan, an island province which has jurisdiction over the South China Sea region, and has a lot of affinity with the Philippines in terms of weather and its main agricultural industry and Dai Zhen, deputy director general of the province, was profuse in inviting Rody for a visit.
Dai said that the province had sisterhood relationship with Cebu and Palawan which she expects to be key in raising economic cooperation among the provinces.
She said that talks are ongoing for cruise ship stops in Hainan, Cebu and Palawan to promote tourism.
Dai said the goal of Hainan now is to set up direct flights from the province to the Philippines.
The main strength of Hainan is its tourism sector that uniquely promotes indigenous Chinese culture. For instance, it has the Binlanggu tourism resort that is being ran by an ethnic minority called the Li people.
Dai added that Hainan has a lot to share with the Philippines on tropical agriculture research such as in increasing farm output using new technology.
The Chinese officials indicated that huge potentials on trade just among the two southernmost provinces and the Philippines are being overshadowed by the territorial disagreement which should not be the case.