Quezon City: Adopting a ‘derisking’ strategy would prevent China from gaining full control over the Philippines’ critical infrastructure, a political analyst said on Saturday. Speaking at the Saturday News Forum in Quezon City, professor Richard Heydarian acknowledged that the Philippines could not simply ‘take out China from the equation’ but must take steps to limit its influence over key industries.
According to Philippines News Agency, Heydarian emphasized the importance of implementing ‘derisking’ measures, which he described as “high fence, small yards,” to ensure issue-specific but clear safeguards. He praised the recent Maharlika Investment Corp. (MIC) agreement to acquire a 20 percent stake in the National Grid Corp. of the Philippines (NGCP), aiming to dilute the private sector’s 60 percent ownership and reduce Chinese influence.
Heydarian pointed out that while the MIC deal could enhance the government’s sway over the country’s power grid, it is essential to ensure that critical infrastructure is not significantly run by China. MIC’s acquisition involves purchasing preferred shares in Synergy Grid and Development Philippines, Inc. (SGP), which holds a 40.2 percent effective ownership in NGCP.
MIC president and CEO Rafael Consing Jr. has expressed interest in acquiring shares in the NGCP held by the State Grid Corp. of China (SGCC). The NGCP is reportedly a target for espionage by arrested Chinese nationals in the country.
Heydarian compared the Philippines to ‘the new Berlin of the 21st century,’ highlighting its strategic position in the geopolitical landscape and the challenges posed by China’s aspirations for regional dominance. He criticized outdated Philippine laws that inadequately address espionage, noting that the country’s treason laws apply only during wartime and impose minimal fines, thus failing to deter potential spies.
He urged the Philippines to update its legal framework to counter espionage effectively and to leverage its geographical position as a strategic advantage rather than a curse.
