Filipinos in South Korea

9 Valid Arguments of China’s Claim in the name of South China Sea

 

By Huan Tran

The South China Sea in Southeast Asia is bordered by 7 countries: China, Taiwan, the Philippines, Brunei, Indonesia, Malaysia and Vietnam. The name of that water, like others such as Gulf of Mexico, Indian Ocean, Arabian Sea, Persian Gulf, Gulf of Thailand, Philippines Sea, East China Sea and Sea of Japan, do not imply any notion of sovereignty because they were invented for convenience by European explorers.

In the South China Sea; which the Philippines called it West Philippines Sea, there are three islands groups – Paracel islands, Spratly islands and Scarborough shoal – which are not permanently inhabited because the islands are small and do not have dependable fresh water. Some man-made objects have been found on some of them, indicating transient human presence, because since prehistory, fishermen, merchants and pirates from various countries built temporary shelter on them. Because those islands cannot support permanent human habitation, various national governments in the area recently had to build superstructures on, as on Okinotori (a Japanese islet in the Pacific Ocean), to support human habitation.

China claimed sovereignty over 90% of the water and all the islands in the South China Sea by drawing a nine-dash line covering 90% of that sea, prompting her neighbors to protest that her claim contradicts international law, specifically the 1982 United Nations Convention on the Law of the Sea (UNCLOS).

UNCLOS gave a coastal nation or an inhabited island an exclusive economic zone (EEZ) of 200 Nautical Miles from the baseline (shoreline at low tide) in which the coastal nation or the inhabited island has the exclusive right to exploit natural resources. China's nine-dash claim extends beyond her EEZ, biting into the EEZs of her neighbors. Also, UNCLOS said that rocks on the sea that cannot support human habitation and do not have economic life of their own cannot have EEZ. By UNCLOS definition, the South China Sea islands cannot have EEZ because they cannot support permanent human habitation on their own. Only China argued that they have EEZs, a hypocritical argument because in the dispute about Okinotori, China had argued that Okinotori cannot have EEZ because Okinotori cannot support human habitation on its own. As the Paracel islands lie halfway between China and Vietnam while Spratly islands and Scarborough shoal lie within the EEZs of China's neighbors, China argued that those islands have EEZs simultaneously with claiming sovereignty over all the islands in order to maximize China's EEZ at the expense of her neighbors.

China justified her exaggerated claim on the South China Sea by arguing that ancient Chinese texts mentioned certain islands in the South China Sea, proving that Chinese people were the first to navigate that sea and the first to discover the islands in the area, that China was the first country to exercise jurisdiction over the islands and that the South China Sea was China's historic water. China further argued that in 1947, when China published a map of that sea with an eleven-dash line (predecessor of the nine-dash line), nobody protested, proving that the world had accepted China's claim. However, close examination shows that China's arguments are baseless.

9 Valid Arguments of China's in Claim South China Sea

FIRST: In 1947, the world did not react to the map of the South China Sea with the eleven-dash line because the world ignored that map. That map carried as much legal weight as the traditional Chinese political thought which said that the world (All-under-heaven) is under the authority of Chinese emperors. Can China argue that the world had accepted China's sovereignty over the world because nobody protested when the Chinese emperors declared that the world is under their authority?

SECOND: Countries that had historical border with the Arctic Ocean formed the Arctic Council to divide the Arctic natural resources according to the rules of UNCLOS. China never had any historical border with the Arctic Ocean, yet China asked to join the Arctic Council in order to have a share of Arctic natural resources, arguing that the Arctic Ocean is a "common heritage for all of humankind". If the Arctic Ocean is a "common heritage for all of humankind", then the South China Sea is a common heritage for all the peoples who live on its shores, not only for China.

THIRD: Peoples of the Austronesian language family, more specifically the Malayo-Polynesian branch, were the first to navigate the South China Sea. Their original homelands were Southern China or Taiwan. Between 5000-2500 BC, they crossed the South China Sea to populate the Philippines, Indonesia and Malaysia. From Southeast Asia, they crossed the Pacific Ocean to populate Melanesia and Micronesia by 1200 BC, Polynesia by 1000 BC, Easter Island by 300 AD, Hawaii by 400 AD and New Zealand by 800 AD.

They also crossed the Indian Ocean to populate Madagascar by 0-500 AD. The Indo-Pacific maritime space, including the South China Sea, was their historic water. Since the Austronesian peoples (ancestors of the Filipinos, Indonesians and Malaysians) were the first to navigate the South China Sea, they were the first to discover the islands in the area and to fish in the associated waters.

Though they did not invent writing to record their discovery, it would be ludicrous to deny their discovery of the islands so close to the Philippines and Indonesia in light of the fact that they were able to discover the various islands in the vast Pacific Ocean. By the way, they have been displaced or reduced to aboriginal minority status in their original homelands.

International Waterway – South China Sea (West Philippines Sea)

FOURTH: The South China Sea has always been an international waterway since prehistory. Indian traders navigated that sea early in prehistory, introducing Indian philosophies to Southeast Asia, leading to the formation of many Indianised states on Islands Southeast Asia in ancient time.

One of those states was Srivijaya, located on Indonesia in the 7th century and exercised prominent maritime activities in the South China Sea.

During ancient time, the influence of Chinese civilization on Southeast Asia was limited to Vietnam whereas the influence of Indian civilization was dominant throughout Islands Southeast Asia, indicating Indian traders were very active in the South China Sea.

Persian and Arab traders also navigated that sea, introducing Islam to Indonesia and the Philippines. The Arabs even settled in Guangzhou during the 7th century. A 7th-century Chinese monk, I-Tsing, went pilgrimage to India by embarking at Guangzhou on a Persian ship, stopped over at Srivijaya before continued onto India.

FIFTH: Even if Chinese people were the first to navigate the South China Sea (not true), China cannot claim sovereignty over the water that is used by many other countries. The Philippines, Indonesia and Malaysia do not claim sovereignty over the South China Sea, the Indian Ocean and the Pacific Ocean even though their Austronesian ancestors were the first to navigate those waters. Norway does not claim sovereignty over the Norwegian Sea even though the Norsemen (Vikings) were the first to navigate that water to populate Iceland and Greenland in the 9th century. Portugal does not claim sovereignty over the water off the West African coast, the water around the Cape of Good Hope and the Indian Ocean even though Portuguese under Bartolomeu Diaz and Vasco da Gama were the first to navigate those waters in 1488 and 1498. Spain does not claim sovereignty over the Atlantic Ocean, the Magellan Strait and the Pacific Ocean even though Spaniards under Christopher Columbus and Ferdinand Magellan were the first to navigate those waters in 1492 and 1521. Russia does not claim sovereignty over the Bering Sea even though Russians under Vitus Bering were the first to navigate that water in 1741.

Ancient China's text on South China Sea

SIXTH: Ancient Chinese texts which mention the South China Sea islands do not describe discovery of the islands but only describe general knowledge about the islands, knowledge shared among the fishermen, merchants and pirates from various countries who navigated that sea since prehistory. Chinese writers were the first to write about the South China Sea islands because China invented writing earlier, not because Chinese people were the first to navigate that sea or the first to discover the islands. This principle is illustrated by the Sea of Japan and the Black Sea.

Japan first appeared in written records in 57 AD in China's Book of the Later Han as followed: "Across the sea from Lelang were the people of Wa". Lelang was a Han Empire's military outpost in Korea and Wa referred to Japan. The sea between Lelang and Wa is now known as Sea of Japan. Chinese writers were the first to write about Japan and Sea of Japan because China invented writing early, not because Chinese people were the first to navigate the Sea of Japan or the first to discover Japan. Korean and Japanese peoples lived by the Sea of Japan since prehistory and sailed into that sea to fish and to trade with each other, and knew about the existence of each other since prehistory, long before Chinese writers wrote about Japan and Sea of Japan.

The Black Sea first appeared in written records in 5th century BC in the writing of the Greek poet Pindar as "Pontos Axeinos". By the 5th century BC, the Greeks had established many colonies by the Black Sea. Greek writers were the first to write about the Black Sea because Greece invented writing early, not because Greeks were the first to discover or the first to navigate the Black Sea. There were other peoples who lived by the Black Sea alongside with the Greeks and had sailed into that water to fish and to trade since prehistory, even though they did not invent writing to write about that. The Black Sea, like the South China Sea, is a common heritage for all the peoples who live on its shores.

SEVENTH: Ancient Chinese texts which mention the South China Sea islands mention those islands as foreign lands, not as China's territories, and do not describe which activities the authority of ancient China exercised on the islands. Therefore, there is no proof of China's jurisdiction over the islands. In the case of Scarborough shoal, China argued that Kublai Khan's officials were the first to map out and to establish jurisdiction over those islands in 1279. However, Kublai Khan was the Great Khan of the Mongol Empire who conquered China. If any country can inherit Scarborough shoal from Kublai Khan, it is Mongolia, not China.

In 1279, Kublai Khan's officials neither "discovered" nor "established jurisdiction" over Scarborough shoal because that place was already the historic water and traditional fishing ground of Filipino fishermen, descendants of the Austronesian sailors who navigated the South China Sea and populated the Philippines in 5000-2500 BC. Scarborough shoal was known as "bajio de Masinloc", meaning shoal of Masinloc, in a Spanish-made map of the Philippines in 1734. Masinloc is not a Spanish word and is the name of a municipality on the Philippines' main island, confirming that Filipino fishermen had been to and had named the islands after their own tongue for centuries.

EIGHT: Official maps of the Yuan Dynasty and Ching Dynasty, including but not limited to Da Qing Zhi Sheng Quan Tu (published in 1862) and Huang Chao Yi Tong Yu Di Zen Du (published in 1894), show that the southernmost extent of China ends at Hainan islands (see below).

FINALLY: (9th) The Chinese empire originated on the Yellow river basin and eventually conquered many lands and peoples, including Tibet and Sinkiang, which is why China is a multiethnic, multi-languages country. At the time when China allegedly discovered the South China Sea islands, China's border on the mainland was not what it is today; Tibet and Sinkiang were independent countries of the Tibetans and the Uyghurs, respectively. The Tibetans and the Uyghurs are demanding self-determination. Three dozens Tibetan monks have burned themselves to death to draw attention of humanity to the sufferings of their people under China's rule. If China is serious about its historical claim, it should return to its historical border on the mainland, return Tibet and Sinkiang to the Tibetans and the Uyghurs, respectively.

China knows that her arguments for claiming sovereignty over the South China Sea and all the islands in that water are baseless, which is why China refused the Philippines' invitation to submit the dispute to an international court.

Source: Eurasia Review

Singapore slashed down Philippine inflation forecast – PHL market seen resuming climb

Philippines—The country's largest mutual fund group, Bank of the Philippine Islands-managed ALFM Mutual Funds, sees the local stock market hurdling the fresh turmoil in the eurozone and resuming its climb to new heights this year.

In the last two weeks, Philippine stocks have retreated due to the negative sentiment prevailing in the European region, which had spilled over to local markets. Last week, the main Philippine Stock Exchange index suffered its steepest weekly drop this year. It fell by 5.4 percent to 4,879.42 on Friday (May 18, 2012), on escalating risks that the eurozone will break up.

"But we remain constructive of the domestic market given our healthy macroeconomic fundamentals. We think cyclical stocks such as banks and property, which are expected to benefit from the low interest rate environment and improving incomes, will continue to lead the Philippine stock index to higher levels," ALFM director Maria Theresa Marcial-Javier said in a report to stockholders.

"Downside risks are plenty, with the external factors having a hand in shaping the domestic economy. Nevertheless, our confidence in the economy has not wavered," said ALFM chairman Romeo Bernardo.

"We still expect above-trend GDP [gross domestic product] growth, supported by benign inflation. We anticipate the government's fiscal and external position to continue improving. We anchor hopes on the sustained strength of remittance flows, high business process outsourcing sector growth, improved confidence in the government and on the economy, the government's commitment to fiscal prudence, and the priority given to infrastructure development," Bernardo said.

Javier, who heads BPI's asset management and trust group, said in an interview after the ALFM stockholders meeting that the stock market's support level at 4,750 should hold and levels close to this barrier would be an opportunity to increase position.

BPI asset management is sticking to its view that the PSEi would hit 5,500 to 5,800 levels this year.

"As of the end of April 2012, the Philippines is the third-best performing equity market in the region, with a return of 19 percent, driven by strong liquidity flows attracted by the country's favorable growth prospects and generally strong first quarter 2012 corporate earnings. Net foreign buying amounted to $909 million, already more than half of the 2011 level of $1.33 billion," Javier reported to stockholders.

In her report, Javier said 2011 turned out to be a year of opportunities as well as challenges for the economy, the financial markets and investment management industry.

"We expect 2012 to be as exciting and thought-provoking. Nevertheless, we look to the future with optimism, with our expectations strongly anchored on the resilience of our domestic economy, yet remaining mindful of the difficulties that still lie ahead as we confront the challenges in the global financial markets," she said.

Malacañang says welcomes DBS cutting of inflation forecast

Malacañang on Sunday  (May 20, 2012) welcomed the reported cutting by Singapore-based DBS Bank Ltd. of its inflation forecast for the Philippines for 2012 and 2013, saying it may result in lower prices of goods and services.

Presidential spokesman Edwin Lacierda said this is "good news" for the Philippines, even as he noted world oil prices are starting to soften.

"That's good news for us.... Then considering world oil prices are softening, mababa ang ating inflation (our inflation is low), which is good for us," he said on government-run dzRB radio.

He also noted that while world oil prices had risen in past months, prices of basic goods in the Philippines did not soar drastically due to the efforts of Philippine economic managers.

Earlier reports said DBS lowered its inflation forecast for the Philippines due to lower-than-expected consumer prices in the first four months of the year as well as softening oil prices.

The report said DBS slashed its inflation forecast to 3.5 percent instead of four percent this year and 4.3 percent instead of 4.8 percent in 2013.

National Statistics Office data showed inflation rose to three percent in April from 2.6 percent in March.

Advance Technology investments sought & World Class Quality Products in the Philippines

Philippines needs to invest heavily on developing technology, following the models of such countries as India, Korea, Japan and the United States, among others, a prominent engineer and entrepreneur said.

Philippine Development Corp. (PhilDev) Chairman Diosdado Banatao, in a recent interview, pointed out that India, instead of being hobbled by its large population, used its human capital to build a strong capability in software development.

Cebu, he said, ought to push for more training so it could build a "technology-based ecosystem" that can create new applications or solutions to solve problems.

This way, he said, the country can slowly transform from a buyer into a major player in the global market.

"We are limited in our own markets. But, we have the ability to be part of the global market because we have way more people than Japan and Korea," said Banatao, the managing partner of Tallwood Ventures.

He pointed out that what made countries like Korea, Japan, US, Germany and France succeed is that they have built a strong capability and produced technologies that were embedded into their products.

"Imagine that 90 percent of the value goes back to the product creator, and if this is ploughed back to its local economy through investments on research and development to create more products, this alone will have a huge impact on the lives of the people as well as the economy in general," Banatao explained.

High risk, high reward

Eric Manlunas, co-founder and managing partner of Siemer Ventures, advised companies to invest on early-stage firms given the high liquidity in the market today.

"We need to promote angel investing here, for our start-ups to take off," he said.

Banatao added investors should start looking at technology development as an investment, aside from pouring all their money into real estate and shopping among others, to build a community of venture capitalists (VCs).

However, he admitted that some investors in the Philippines fear the fact that success rate among VC-supported ventures is low.

"This involves huge risks, but high returns. But VCs should be there to lead and mentor start-ups," said Banatao.

Aside from the lack of financial capital to build a community of VCs, the other challenges include a shortage of experienced technology entrepreneurs and managers, of scientists and engineers, and insufficient access to a global network of experts.

PhilDev trustee Winston Damarillo said everyone needs to participate—industry players, academe and government—to address all these concerns, considering that the Philippines is among the Next 11 emerging markets.

"We need everyone's involvement so we can turn the brilliant ideas of our people into money-earning products and services, which could further economic growth," said Damarillo, also the founder Developers Connect (DevCon) Philippines and software companies Morphlabs and Exist.

The next 11 markets are Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, South Korea, the Philippines, Turkey and Vietnam.

Making Local Products Globally Competitive

SMALL and Medium Enterprises (SMEs) play a major role in socio-economic development, through their creation of jobs and business opportunities, use of indigenous resources, dollar earnings, and linkages with other industries. With the growing demand for local products abroad, SMEs have begun to adopt a more aggressive campaign to promote their products and search for new markets.

This accounts for the popularity of trade fairs and expositions being held in Metro Manila and the provinces. Entrepreneurs see them as venues to introduce products and services, and the public patronize them for innovative and affordable items.

SMEs comprise 99.6 percent of the country's 80,000 business enterprises, mostly in export, and employ 63 percent of the labor force. While most jobs can be found in Metro Manila, SMEs also provide employment in economic zones and science parks nationwide. The government supports SMEs as the backbone of the Philippine economy. Small enterprise is business with capital and total assets of above R3 to R15 million, while medium enterprise has a capital and total assets of over R15 million to R100 million.

Republic Act 6977 the "Magna Carta for Micro, Small and Medium Enterprises (MSMEs) of 1991," was a landmark legislation for MSMEs. Two other laws –RA 9178, the Barangay Micro Business Enterprises Act of 2002, and RA 9501, the Magna Carta for Micro, Small, and Medium Enterprises of 2008 – provided incentives to barangay-based micro businesses and expanded the SME sector to include microenterprises.

As more community-based enterprises continue to innovate and tap more markets here and abroad, the government and private sector assist them in product development, introduction of new technologies and marketing strategies to improve operations, increase productivity and reduce production costs. 

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