PROJECT TITLE: Effects of the increased Chinese Workers to local industries in the Philippines

STATEMENT OF THE PROBLEM:

President Rodrigo Duterte’s officials have been denying or blaming the department of labor and
employment (DOLE) that there is no evidence to support that there is an increased number of Chinese
workers in the Philippines. But according to the data obtained by ‘This week in Asia’, Chinese nationals
are working legally in occupations that Filipinos are qualified for resulting some 3.8 million of Filipinos
whom are unemployed as of July 2018. In response to this problem, our study aims to investigate if there
are any effect in the economy due to the increased numbers of Chinese nationals. Furthermore, this study
also aims to show why local industries prefer to employ Chinese nationals rather than Filipinos.
OBJECTIVES:

 To determine if there is an effect of increased Chinese Workers in the Philippines

 To verify if the influx of Chinese Workers affects the economy

REVIEW OF LITERATURE
In the past years, there has been an influx of Chinese workers in the Philippines as stated by the
department of labor and employment (DOLE). From 2015-2017, there were 115,162 Alien Employment
Permits (AEP) and 51,000 were Chinese. The economic dominance ascribed to the Chinese in the
Philippines is no longer less exceptional than in various nations in Southeast Asia. Even though the Chinese
only allocates one (1%) to two (2%) percent of the population, their share of the market assets is ranging
from fifty (50) to fifty-five (55) percent. They dominate the Philippines’ leading supermarkets, department
stores, fast-food chains, and almost every major banks and stock broker-age firms, and they control the
country’s wholesale distribution networks, shipping, construction, textiles, real estate, manufacturing,
pharmaceuticals, and press (Hodder, R., 2007). According to Forbes news, the Philippines is flooding with
Chinese people, ever since President Duterte abandoned ties with the US and later on established close
relationship with China. According to the Bureau of Immigration a total of 3.12 million Chinese entered
the Philippines from January 2016 up to May 2018, while Filipinos who seeks jobs abroad rose up to 2.12
million as of 2016. Based on Mourdoukoutas, Chinese go here in the Philippines even though the GDP in
their country is higher to establish businesses bringing with them their own engineers and workers, while
also enjoying gambling in the country. Finance Secretary Carlos Dominguez III admitted that the
government has been deprived of at least 3 billion pesos per month in tax revenues from Chinese workers
employed in the offshore gaming companies who don’t pay personal income taxes. The mass entry of
Chinese workers has deprived Filipinos the chance to be employed and because many of them enter illicitly,
these Chinese workers does not pay their taxes from their incomes (Valderama, T., 2019).
 Globalization may influence the welfare by way of the workings of labor market. Specifically, trade
conversions may stimulate efficiency and bring forward particular sectors in order to obtain in terms of
increase investments, employment creation, and increased wages. However, it can also cause job
destruction and declination in the real wages of various sectors in the economy specifically in the previous
steadily secured import-competing sector. There is also insufficient exploration examining how ventures
are able to regulate to the more contentious environment especially in supervising their human resources to
develop worker productivity and lessen their labor cost per unit of output. The degree of adaptability of
labor markets in the Philippines is especially important compared to others with regards to hiring and firing,
the accessibility of part-time and settled-term contracts, working schedule conditions, minimum wages, and
minimum requirements of employment, etc. (Villamil and Hernandez, n.d.). According to the Bureau of
Immigration, from 2016 to 2018, more than 3 million Chinese nationals have entered the country. In
response to this, Silvestre Bello III stated that chinese can work in the philippines but only when Filipinos
can’t do their work properly. Moreover, according to the Department of Labor and Employment (DOLE),
Filipinos should be the first priority than the Chinese for the available and opportunity jobs in the country.
Out of 7.1 million tourist arrivals in the Philippines last year, 1.2 million Chinese tourists went to the
Philippines, second to South Koreans. However, accoring to Pres. Rodrigo Duterte, that the number of
illegal Chinese workers in the country is fair on the number of undocumented Filipino workers in China.
The Philippine consulate-general in Hong Kong estimated that there are 200,000 Filipinos are working as
a maid in China. Meanwhile, in the Philippines, industry estimated that there are only 100,000 to 250,000
Chinese nationals employed illegally. On an interiview of Tulfo with the President, he stated that in China,
there were also many illegal Filipinos workers who are employed, but the Chinese government didn’t mind,
as long as they’re not commiting any crimes.