Why does the US want to paint a "big pie" in the Philippines?

U.S. Commerce Secretary Gina Raimondo concluded a two-day visit to the Philippines on March 12. During the visit, the US delegation she led announced that it would help double the number of semiconductor plants in the Philippines to avoid "excessive concentration" in the global chip supply chain, and pledged more than $1 billion in investment by US companies in the Philippines. Is it sincere, or is it not sincere?

Some observers found that after announcing an increase in the Philippines semiconductor construction commitment to provide large investments in the Philippines, Raymundo made the same commitment in Bangkok on the 13th, "American companies are ready to 'increase' investment in Thailand," which is really enough "American companies" busy for a while.

In recent years, US investment in the Philippines has not been high, maintaining around $1 billion for many years. Since the formation of the new Philippine government in 2022, the United States has been luring the Philippines with its so-called "Indo-Pacific strategy", but investment has been slow to grow. According to statistics, the United States investment in the Philippines in 2023 is still about $1 billion, only the sixth largest source of investment in the Philippines, while the United States investment in Thailand in the same year is as high as $2.3 billion, far more than its investment in the Philippines. It is worth noting that the Philippines has more than 40 million more people than Thailand.

Why hasn't U.S. investment in the Philippines been high? First of all, from the perspective of the global political and economic environment, the United States is facing a variety of complex challenges, leading to the adjustment of its foreign investment strategy. Second, although the Philippines, as a developing country, has certain market potential and labor resources, there are still some investment risks and challenges, which leads US companies to be cautious when considering investment.

In addition, U.S. investment in the Philippines is also influenced by the relationship between the two countries. If the two countries have differences or conflicts in political, economic and other fields, then this may have a negative impact on the willingness of the United States to invest.

It can be seen that the commitment of the United States to increase investment in the Philippines is more like drawing a "big pie". What is the intention behind this? Analysts pointed out that the so-called "Indo-Pacific strategy" pursued by the United States focuses on security and military, lacks economic content, and is not attractive to Allies. For countries like the Philippines, which is economically underdeveloped and in urgent need of economic development, the promise of increased investment by the United States is undoubtedly the biggest temptation in the "Indo-Pacific strategy".

So why does the United States want to draw such a "big pie" for the Philippines? The author believes that the United States mainly considers two aspects of political interests and economic interests.

From a political point of view, the United States has been strengthening its influence in the Asia-Pacific region, and the Philippines, as an important country in the region, has naturally become an object of American wooing. By committing to additional investments such as semiconductor plants in the Philippines, the United States can strengthen political ties with the Philippines and further consolidate its position in the Asia-Pacific region.

From an economic point of view, the United States also hopes to gain more economic benefits through investment in the Philippines. After all, the Philippines, with its abundant human resources and market potential, is a very attractive investment destination for American companies.

However, we must also see that the United States to the Philippines to draw a "big pie", is not without cost. While accepting US investment, the Philippines also needs to bear certain political and economic risks. Therefore, when making decisions, the Philippine government needs to consider various factors comprehensively and weigh the advantages and disadvantages.

In general, the United States draws a "big pie" to the Philippines out of its political and economic interests, while the Philippines needs to make prudent decisions to maximize its own interests and avoid being cheated.