OUR OWN TRADE WAR

the meaning of Trade War between the US and China has an impact for  the country as its effects to our economy and trade.

We should learn of the situation why President Trump of the United States had brought the matter to the fore of his trade and foreign policies.

The need for issuing tariffs for their imports has something to do with protection for their economy as the main reason.

In years, the US has ignored that China had imposed tariffs to US goods entering China while the US imposed almost zero tariffs to Chinese goods imported to the US. 

the wide trade deficits of US against China has been the formidable reason on the trade policies of the US where this sitting president had noticed that entirely all over the world the US has been the target of unfair trade practices of every country trading with the United States.

For awhile, we should take into consideration of the trade war of the US with China as a lesson for our trade policies also for the Philippines.

It is important also to give attention to the current condition of our trading datas with every country around the world, and learn to employ strategies that will safeguard our trade deficits with everyone.

It is about time time to take serious business about our trade conditions today as the world is in the path of accumulating wealth for their economy in order to be respected in the international community only when our economy is healthy and strong.

MANUFACTURING FOR THE COUNTRY.

Why do we need to discuss topics about economy for the country and why should we push our advocacy for better economic policies by our government at these times?

There are compelling reasons why these matters are important for our discussions today instead of being preoccupied with the drug menace in the country.

the environment of trade and commerce is the reason of setting the stage of economic attention for our government instead of political issues ahead.

We need to have advantage of our international trade where we source our foreign reserves particularly the US dollar.

Without good industrial base such as manufacturing to counter foreign imported products that drain our US dollars,  the economy will be difficult to survive.

The government must give attention to more industries that will counter or reduce importations.

It is only in broader and bigger manufacturing o f the country that we can compete and fight international trade and diminish our trade deficits and be able to have ample ability for foreign debt payments.

Instead of feeding our dollars for bigger importation, we should create more dollar earning industries in the country.

ECONOMY IS ABOUT TRADE

We are experiencing at the moment financial difficulties due to lack of revenues by the government to sustain its obligations and spendings that has now resulted to the TRAIN LAW  as hope to stay alive in the middle.

BALANCE OF PAYMENTS (BOP) STATES THE CONDITION OF THE ECONOMY

The current trade deficit of the country indicates the real condition of our financial capability as a government, and as a country. The BSP has been releasing figures lately that speaks about the situation which is are all deficits since 2016.

"The current trade deficit also factored into the Philippines' balance of payments report. According to the latest report from the Philippine Statistics Authority, the trade deficit in May was at $3.70 billion." 

"For the period January-June 2018, the cumulative BOP deficit of US$3.26 billion is nearly fivefold more than the US$706 million BOP deficit recorded during the same period last year, data showed."- CNN NEW REPORT JULY 20, 2018

We see the situation as a simple plus and minus of mathematics that can be easily understood that the government should not take pain to find solution to the problem of  the economy.

Business is the law of economy for any country, it is about wealth, and nothing more. But the problem of having wealth is also a not difficult task to make, but easily can be done by simple analysis and thinking.

MORE MANUFACTURING

When we speak about our current trade deficits which is about 3.70 billion USD is actually about low exports  by the country,  we just need more exports that would mean more manufacturing to mitigate and eraze the gap.

We just do not need to equal imports by exports, we must exceed our importatons as many times possible to state wealth for the country.

ENCOURAGE BUSINESS AND TRADE

To earn more revenue for the government, the administration or with the legislation of  the congress should enact laws that would ensure local capitalism, investments and free the atmosphere of commerce in the country.

TRAIN LAW 

TRAIN  law might have been a misplaced legislation of the congress because it targets to earn more revenues/taxes by the government of the same size of tax base of businesses  and commercial environment in the country.

When the goal is about more revenues, we should take the other way of increasing our tax base, of more businesses, traders, more commerce, in all multiplication of the GDP.

This is a broad way situation of finding means for revenues by not affecting its constituents, but in effect, broadening the tax base, good trade conditions that would result to more vibrant economy. 

The Train law is about cutting and suffocating the air for trade and businesses that will eventually lead to the collapse, reduction, and bankruptcies due to hostile enacted laws killing trade. 

CHINA BANNED 5G IN AUSTRALIA

The situation where China has been regarded as a security threat by the US and other countries in terms of its technology espionage is something that we should also be careful about even though we  don't possess technology, but on issues where sensitive information's are at risk.

Our situation is not about technology, but for our national security issues under our plan to seek investments from China for our 3rd telco player in the country  comes as a matter of concern.

THE US AND AUSTRALIA IS AN ADVISE TO THE MATTER.

Definitely, the US and AUSTRALIA  indirectly by their experience has given us the advise on why we should reconsider our plan to deal partnership with China in the are of telco industry for the country for reasons they had cited as threats.

Australia blocks China’s Huawei, ZTE from 5G development on security grounds

List of Chinese spy cases in the United States

For sure, for security reasons, there's no point to give China a hand in our communication industry where such will lead to  espionage of sensitive information regarding national policies that china can use against us.

While the US is considered as the beacon of technology of the world, and China is very much interested to acquire their advanced technology, was banned and rejected recently, is a strong indication then that our government too should refrain at this point in pursuing partnership in areas of sensitive and strategic investments such as the telco.

CHINA IS OUR ADVERSARY IN THE WEST PHILIPPINE SEA.

China is a transgressor in the West Philippine Sea,  and has threatened our fishermen of going to our EEZ and to our traditional fishing grounds, and much more  defied the UNCLOS ruling and prohibited us since then with their fictitious nine dash line.

Under this situation, the antagonistic attitude of China towards us is a kind of threat to our national security.

The situation is now felt by the  supply shortage of gallungong in the country and the government is now opting  importation which is unusual.

GOVERNMENT COMMUNICATION WILL BE ENDANGERED.

The matter will be much more complicated when China will get a hand to supply, operate our telecommunication system in the country, and their habitual espionage will further complicate the situation and affect our government policies.

Naturally, when communication is under threat, China which has big interest to our natural resources will easily infiltrate sensitive informations and policies of the government and can take actions ahead to the detriment of our national security.

There is no other reason to reject the same the offer of China when the US and Australia had already showed us the security reasons about telco industry.

COMMUNCATION IS AN STRATEGIC INDUSTRY

Regarded as an strategic investment, the government should not rely foreign investments to this sector, but it may further strengthen local investments as priority.

Secondly, when investments are needed in this area, criterias should meet not for those countries in adversarial state with the Philippines, rather reserved only for our  long time allies of democratic states possible.

GALUNGONG IMPORTATION

The proposed importation of gallungong by the government reveals a problem that food security is no a matter of national concern.

As quoted in the news, the country had been importing this round scud fish from abroad thru commercial canning companies in the country, but not a sign where the need today to import them by reason to augment food shortages for the populace indicates seriousness of the situation that our government must  put attention to our food security problem at hand.

BFAR ARGUED THAT THIS IS NOT THE FIRST TIME OF OUR FISH IMPORTATION.

There is that difference of commercial importation of fish for the  canning plants in the Philippines vis-a-vis with the need to augment supply and demand in the country directly affecting food security. The situation is showing detrimental concerns that the government must look into and resolve.

The foregoing  argument  does not justify the importation of Galungong, it only admits the dwindling local production caused by the loss of fishing areas in the west Philippine sea by our own fishermen.

IMPORTATION DEPLETES OUR FOREIGN RESERVES.

Directly, our foreign reserves are affected by every importations in the country and hence the addition of simple supply of gallungong shall not be appreciated to add more injury to our already declining foreign reserves.

GALLUNGONG iMPORTATION a news item from THE CNN

THE FISH IMPORTATION IS AN ISSUE OF THE WEST PHILIPPINE SEA.

This issue translates to the situation of the West Philippine Sea , since the assertion and occupation of China of its nine dash line  had directly affected the activities of our local fisherfolks in the area by its prohibition of Filipino fishermen fishing in our own EEZ.

We have now felt the effects of our loss of our sovereign rights in the exclusive economic zone of our country as ruled by UNCLOS resolution. The declining supply of gallungong is just he cause of the loss of our fishing rights in the West Philippine Sea caused by China's occupation of the traditional fishing grounds of Filipino fishermen.

THE FEAR OF THE FUTURE

There is fear of the future for all Filipinos by this situation of the scarce supply caused not by our poor local production, but by the loss of our traditional fishing grounds in the west Philippine sea.   It will certainly grow and result into more catastrophic future scenarios when situations are not resolved to regain our rights in our own EEZ.

At this loss, there is nowhere our fishermen will go for fishing unless it is resolved.

With our growing population, food security is a matter of national concern that must be addressed by the government, that it is of the same case  for China that she had  initiated the nine dash line falsely disregarded by the Hague tribunal that food security is her own issue.

NEEDED FUTURE ACTIONS

It is no longer a future action to assert our rights of the west Philippine sea that we have won from the UNCLOS, it is now that we must take necessary action to exercise of what was ours.

There is no better economic strategy but to exercise our rights now before anything are turned difficult to resolve later. Our silence of the issue as an acquiescence, an approval of the illegal acts of foreign intruders are the only option to maintain economic prosperity for the country.

image above is from this link :gallungong improtation

 PH eyes importing galunggong to stabilize prices

IMPORTATION TO STABILIZE PRICES

In truth, allowing importation of Gallungong to stabilize prices in the local market does not mitigate the situation and in long term is not the solution to address the impending food supply in the country, it merely reveals the real situation that there is fear  for the future of our food security.

We are not actually addressing the problem. Since we now see the situation, the government should now discuss the issue of exercising our rights to fish in our own EEZ, to stop of being silent on the matter.

It means also that our local production has declined by shortage and loss of our fishing grounds caused by China actually.

FISH IMPORTED MIGHT BE OUR OWN FISH IN THE EEZ.

There is valid thought that the fish we now import are actually our own in the EEZ that becomes an awkward act  for the government.

Making our own way for progress

The situation between China and Pakistan is just a matter to be observed by our own economic strategists that the relations of the two countries in trade is getting difficult for each sides.

We do not know what will be the long term effects of loans that Pakistan is taking from China that sooner int he future, trouble seems to be on that relation by how Pakistan can repay china of its loans.

Sri Lanka is one big example to observe that Pakistan itself might get into the same trouble.

In the Philippines, the alarming rate on which our government is dealing with China and having more loans from this country is  thing that must considered for study and caution. Because the experience of Sri Lanka and other countries in the process  must be a big factor to slow down and find other alternative and means instead.

Much more, the assertive actions of China is becoming evident in the South China sea and it must be a factor to reconsider things we are getting into with her. It is no unlikely that the south China sea in particular with the EEZ of the country to enjoy it s natural resources solely for the benefit of the country's economy must be the first policy of our government.

The rate we are engaging with China particularly loans and financial assistance must be taken with caution as we are observing all other countries are having that difficulty now.

malaysia, Cambodia, Vietnam, the African regions, and all over are now apprehensive of their future with China.

Even the Untied States is now in fear of Chinese dominance in trade and in their financial power to defeat countries and replace their leadership globally.

So, what do we expect from China, or how can our relations with her after the loans and the period to repay them?

There many other solutions that we look into internally rather taking our chances with China. We can have internal changes in policies and make our economy the way without foreign interventions and infusions.

We can make out economic growth, successes without strings attached difficult  to untangle in the future. Better not to engage in a manner that we will regret later, rather we can take a path other that that of China, but purely of our Filipino  methods and means.

FORGET CHINA, THINK PHILIPPINES

It is surprising that China has made great leaps in technology and manufacturing that made her a dominant world economic leader today.

The motor, or car manufacturing  companies of China that comes in droves are something that the country should  find as a compelling matter for ourselves to consider energizing our industries as mechanisms to defend our trade and economic situations that will be confronted by these developments in China and its impact to us. That on top of the current car and auto imports of the country, the onslaught of China's trade will definitely damage what is already a suffering  economy for the Philippines, and if not abated may cause more that can further ruin the economy that will hurt our recovery and growth.

We should view the growth of China in manufacturing as a threat to our economy, and that there must be something done internally to prevent the effects of trade of China to the Philippines.

The US and China embarkation to Trade war reflects as a lesson for our government, that such experience of the US against China in trade relations puts the americans on the bad side of the equation. These unfolding events b demonstrate to us tetween the two countries should concern us deeply, knowing that the US as being the biggest world economy is now at threat with the transformations of China becoming the next world leader by their wealth resulting from their trade surplus abroad, that naturally  is greatly their accumulated wealth will have its consequences into military growth and power.  This is the real fear about China's big economic growth.

In the outset, our government should take attention at once to the condition of  our trade with the rest of the world if we intend to defend ourselves primarily our own economy that later on if we can able to buildt and sustain, our progress for improving and creating more will then result to what is the goal for economy liberty and self-sufficiency of our future.

Silently, we should engage now while others are struggling with loans given by China.

To speak, trade war must be taken as a normal course of governance,  a regular business activity of our government, that for national security, such attention for trade, datas, rates, models, trends on the output and performance of our manufacturing, technology, and others must be taken into consideration as the core of the government's activities. That in keeping focus on these aspects, it will cause positive results faster than we can imagine if we concentrate on these issues just just like US  is now  taking care of these matters.

It is imperative for any government to be engulfed by trade war.

There are few dozens of car makers in China at present, and these factories and companies under this industry will make them ever self-reliant, self-sufficient, and self-sustaining domestically and will surely contribute to build support for their military, that its effects of their capabilities of improving their technologies is now felt in the south China sea disputes.

All civilian industries  are prelude to military modernization, and this is the very reason why China focused on manufacturing that naturally had made them sustainable in providing growth for their military. 

In these terms and understanding about the contribution of car industry in the country must be recognized by the government as a necessity today, that we can no longer afford delay before the global rush of economic power and financial superiority as the game and now being enjoyed by China.

Is it impossible for the country to start by its own car industry? This industry is just one component of ramifications for building or acquiring technology transfers that would cure the problem of our economy.

This is the question that the government itself evade to address head on today, that by the self-interests of our leaders elected, they've swayed on these facts and divert to social problems of the country which are inappropriate issues to focus on. 

Our elected leaders and empowered agencies of the government knows that this industry must start and lead our economy, yet by each administrations, we have been confronted by fears, corruption, submissions, and often lack of interest for these issues that fails gain for the nation. 

We had been into a culture of indolence and doing nothing with regard to the concept of technology that our people big or small tend to engage in a past time and insignificant matters forgetting technology and entrepreneurship.

To make things move, the government and our elected leaders should act on concentrating the investments of the government by means of incentives and promotion from the private sectors, take partnerships, loans, grants, tax incentives and holidays, exemptions, priorities, emergency, and exlcusive status that we can award to corporations, consortiums, mergers of private capitals, mixed investments of private and government, local and foreign arrangements, partnerships, joint ventures, and so on, to make things move and realize not only into a small scale but to emphasize that the industry must be grown proportionately large making these goals realized in short term period attaining global status and superiority