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Sunday, June 5, 2011

Lessons from the Chinese of the Philippines

Rodel J. Ramos

Many of us have the notion that the Chinese in the Philippines are united, are in control of the economy, and has great influence in politics. We point at John Gokongwei, Lucio Tan, Henry Sy and others as dominant players in business.

A study by scholars in the book The Chinese as Filipinos published by Philippine Association of Chinese Studies shows that the Chinese in the Philippines are as varied and as disunited as Filipinos in the United States and in Canada. There are approximately 1,000 Chinese organizations serving a population of around 1 million.

History

A historian O.W. Wolters noted that as early as 300 A.D. Filipinos were sailing across the open sea to Funan (An ancient Khmer kingdom located along the Mekong River in present day Cambodia.) Chinese too had been to many places in the Philippines seeking trade and jobs by means of the “barbarian ships”. Locsin’s research of oriental ceramics unearthed in the Philippines showed that Filipinos were trading with mainland Asia as early as the Tang Dynasty (618-906 A.D.). Wang Teh-ming’s study of various Chinese annals confirmed these ties, the Philippines being mentioned frequently in the 3rd century A.D. They called it Hey-Chiy-Kuo (Black-Teeth Country) because some inhabitants already practiced teeth blackening as a form of adornment, and “Gold Country” natives were already trading gold with China. The Liang Annals (502-577 A.D.) called the Philippines Tchih-Jan-Ta-Chow (Self-Burning Great Island) and mentioned chiau (abaca), a kind of banana plant whose fiber was woven into cloth. The Sui Annals (581-618 A.D.) and the Tang Annals (618-906 A.D.) called the Islands Huo-San (Fire Mountain or Volcano Country)

The Chinese even in ancient times already dominated trade in the Philippines. The Spanish Government passed several measures to make it more difficult for them to trade so that they can take over the profitable venture. A Royal decree of June 19, 1661 ordered the colonial officials in Manila not to permit the Chinese to reside among the native inhabitants in the Philippines especially in Tondo for fear of alliance between the Chinese and the native inhabitants. This brought about the China Town in the heart of Manila, and concentration of Chinese in an area in Iloilo, Negros and other places. Suspicions and mutual hostility characterized the Sino-Spanish relations, exploding periodically into bloody massacres and mass expulsions. Massacres took place in 1603, 1639, 1662, 1762 and 1820. Exorbitant taxation was placed on them, limited their freedom of travel and denied them fair trial. Even the Church did not allow Chinese to be buried in Catholic cemeteries nor allowed them to act as godfather to natives.

Abaca was the main product of the Bicol region but controlled mostly by Chinese mestizos from Iloilo who waved it into cloth called sinamay. Sugar production started in Iloilo but in 1850, Negros overtook the production with 1,000 to 5,000 tons in 1854.

The coming of the Chinese to Negros grew with the development of the sugar industry. A Royal Decree of August 5, 1850 allowed hacenderos with annual production of P2, 500 to import as many as 400 Chinese workers and those with less, 200 Chinese farms hands (jornaleros). This came about because everybody has land and did not want to work for others. Chinese working in a province with 30,000 populations or less paid annual tax similar to the natives, and this gave them incentives to move to Negros. The Chinese introduced the process of sugar production known as de sangre. This was a set of three rounded, wooden blocks, vertically set side by side and turned on against each other to press the cane that passed through them. A carabao operated this crude machine. The industrious and thrifty Chinese intermarried with landed Filipina, some adapted Christian names to avoid harassment from the Government. Their offspring formed the Chinese mestizos who monopolized the trade, financed production, and owned warehouses and sugar mills. Later, these moneyed Chinese foreclosed thousands of mortgaged farms and became big hacenderos. Japanese also came as sugarcane farm hands.

Limahong, a Chinese pirate and his men tried to conquer Pangasinan.

Chinese contributions

The Chinese brought into the Country tools for farm, sugar cultivation, sugar processing and new skills in construction and food processing. In construction, the Chinese artisans executed the plans for the imposing San Sebastian Cathedral, mansions of the rich and the Spanish colonial officials, military forts and churches.

A lot of words in the Filipino language and other dialects have their origin in Chinese.

In Negros, the Revolution of November 1898 was under the leadership of Chinese and Spanish mestizos, Leandro Locsin raised money for the revolution. Aniceto Lacson led the northern army while Juan Araneta led the southern army. Jose Yanson negotiated for the Spanish surrender. When the Negros Revolution won, discriminatory laws and regulations imposed by the Spaniards against the Chinese were lifted. During the Filipino American war, two Chinese, Za Tan and Chi Tan solicited money from other Chinese to support the revolution.

John Ignacio Paua of Bicol headed the Revolutionary Government’s arsenal in Cavite, and through his innate skills, substantially raised money for arms. In the Filipino American War, Paua was the most feared and hated among the Republic’s military leaders by the Americans for his “scorched-earth” policy.

During the Japanese war, the Chinese supported the underground movement and many of their descendants joined the resistance movement.

Many of our leaders today are of Chinese descent. Cory Aquino is from the Cojuangco Clan of Tarlac. Jaime Cardinal Sin has linkage from the Chinese mainland. Of course, today we can say perhaps 30% of us have various degrees of Chinese blood. My mother’s family, the Jallorinas and Sodarios are descendants of the Choco Clan of Iloilo.

American era

While the Spaniards separated the Chinese from the Filipinos physically, the Americans separated them psychologically by allowing the community to exist as a separate self-sufficient enclave. Using the divide and rule policy, the Americans encouraged the Chinese to put up their own hospitals, schools, trade and social organizations. Under this liberal policy, the Chinese prospered. They became the main economic ally of the Americans. They were the major distribution outlets of American products and suppliers of American exporters in lumber, rope, abaca, sugar, and other products. But they became the source of envy and hostility of the natives resulting to sporadic racial riots such as in 1919 and 1924.

After independence, Filipinos clamored for nationalism in politics and the economy. The nationalization of retail trade, rice, and corn dealing, and many professions such as engineering, architecture, chemistry, pharmacy, dentistry, optometry, accounting, law, nursing and medicine drove most Chinese from these areas. As teachers, they were not allowed to teach history, sociology and political science. Others who had financial capabilities switched to wholesaling, light manufacturing, importing, and financial services. Many of these prospered and it explains why the Chinese have controlled these aspects of our commerce and industries.

In the late 1950s, because of the nationalization laws and discriminatory policies of the Government, the Chinese were forced to organize and unite. With financial assistance from the Republic of China (Taiwan) Embassy, five organizational pyramids were created in the Chinese population. It was done by federating existing organizations into a national system. The five great hierarchies were: The Federation of Chinese Chambers of Commerce, the Grand Family Association, the Chinese Schools Federation, the Federation of Guomindang Party-related associations, and the Federation of Philippine Chinese Anti-Communist Associations. The Federation of Chinese Chambers of Commerce called “The Federation” functioned as an “umbrella organization” embarrassing and dominating the other four hierarchies and its affiliated organizations. It was and still is the most powerful and usual spokesman of the Chinese population as a whole. The Grand Family Association had under it the clan associations and below them the district and hometown associations. The Schools Federation drew together all Chinese school organizations. The Guomindang and anti-Communist federations have their own groupings.

The prosperity that followed alienated the smaller scale, less-endowed businessmen, the clan associations and other organizations from the more prosperous Federations. They no longer became relevant and concerned with the needs of the small businesses and salaried employees. Cut throat competition also exists among Chinese businessmen.

In the 1960s, the Chinese found themselves more complex and diverse. The younger generations have new interests and perspectives and are being more assimilated to the Filipino culture. There was also the cultural /generation gap. Aware of these, the leaders encouraged the growth of more organizations to serve their needs. Clans and home town associations grew branches in different provinces and major cities around the country.

When the Philippines recognized the Beijing government in 1975, it became possible to visit mainland China. Governmental and association exchanges occurred. Also, international networking and organizations favoring closer ties with China increased. There were also the division of loyalties between mainland China and Taiwan.

President Ferdinand Marcos made it easier for the Chinese to gain Filipino Citizenship and opened professions exclusive to Filipinos. This changed the loyalties of a lot of Chinese specially those who were born in the Philippines.

The study found the immigration from mainland China to the Philippines has continued, much of it illegal. The common estimate is 50,000 to 100,000 “illegal” are coming to the Philippines every year. The traditional associations help them develop cultural and language skills start a business or find jobs.

The continuation of the illegals in the Philippines can be attributed to corruption and bribery in Philippine society. The Chinese are oftentimes the milking cow of corrupt politicians, Revenue, police and military personnel. Families of millionaires have also been targets of kidnapping for ransom some of which were initiated by Chinese.

There are rumors that when a Chinese dies, this is not reported to authorities and another person assumes his or her identity.

Stereotypes

Filipinos sometimes believe that most if not all Chinese are rich, but the study found 10% to 20% of their population are in poverty level. Their support system and charity groups lessen the misery of those in the poverty line.

Accusations of price fixing, manipulation of goods, adulteration, use of dog and cat’s meat in food, hoarding, the rice and corn cartel, tobacco, coconut and sugar monopoly and many others are blamed to the Chinese. Lately, some are blamed for kidnapping their fellow rich Chinese for ransom in cohort with military and police officials.

They are considered as industrious and thrifty. They are content to gain small profits over a period of time rather than make a killing in a short term. If they make a peso, they only spend 5 centavos. They give discounts to fellow Chinese. They support each other financially.

We called them “Intsik Beho tulo laway” or “Tsikwa”. Our elders considered them dirty because they spit everywhere. They go around town buying and selling bottles, old newspaper and scrap of metals which Filipinos found demeaning until we found it was a very profitable business. They owned the corner stores were everybody buys on credit, a cheaper price and a smile.

They live very simple, subsist only on lugaw or noddles on ordinary days and go to Chinese restaurants on weekends and only buy a car or a house when they become millionaires.

While the old Chinese were hard working, frugal, disciplined and lived simply the new generation of Chinese is extravagant, and does not work as hard. However, many of them are more educated than their parents but does not want to get involved with business but excel in their chosen professional fields.

The new Chinese arrivals from mainland China are giving those born in the Philippines a hard competition. They smuggle goods and drugs and sell these products cheaply in the market, even in Divisoria. They get away with this because of the corrupt government officials which they can easily bribe. The local manufacturers and retailers can’t compete and are folding up to the detriment of local producers and workers. That is why Filipino professionals are going overseas in droves.

Conclusion

Analyzing these studies, we can conclude that the Chinese in the Philippines were forced to unite and help each other because of economic and cultural necessities. But Taiwan played an important role in organizing the Federations and financially supporting the Chinese communities. This brought about their success and eventual control of some aspects of the economy. I am sure this also gave some financial gains from interest of loans and a controlled market for products from Taiwan, Hong Kong and mainland China. Filipinos in Canada and the U.S. can learn from this experience. Perhaps the way to go is to create Federations of various organizations specially in business and support these federations. Also, the leading role of the Philippine Embassy in this amalgamation is necessary, not only of the presence of the Consul General in parties and picnics but at a financial and organizational level. The Philippines will largely benefit from this move, increasing export, tourism, investments and technological transfer which means more jobs, profits and taxes. The Japanese Ambassadors also play a vital role in the development of Japanese businesses overseas by being arbitrators and in fact sometimes dictates on the direction of these businesses.

We can also learn from their industry, simple living, thriftiness, discipline and dealing in business.


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