Cagayan de Oro City 2nd District Rep. Rufus Rodriguez (Photo courtesy of Rep. Rodriguez FB Page)
MANILA – Congress can exclude China and other “risky” investors in the enabling law on foreign investments in case the proposed economic amendments to the Constitution are ratified, Cagayan de Oro City 2nd District Rep. Rufus Rodriguez said on Wednesday.
In a statement, Rodriguez said the phrase “unless otherwise provided by law,” which is proposed to be inserted in the Charter’s restrictive economic provisions to give Congress the power to change foreign investment limitations, would not mean that all foreign capital would be accepted.
“Congress can include a ‘screening process’ in the enabling law that would prevent countries which have a conflict with the Philippines from coming in with their investments. I can mention one, and that is China, with which we have a dispute over the West Philippine Sea,” the chairperson of the House Committee on Constitutional Amendments said.
“In other words, Congress can craft a law to make sure that risky countries or investments with implications on our national interest and security can be checked and barred from coming in,” Rodriguez said.
Earlier, Makabayan bloc lawmakers expressed concern that China might control the country’s electricity generation and transmission if these are opened to full ownership by foreigners.
To date, they said power transmission is 40-percent controlled by China.
Rodriguez cited the examples of the United States and United Kingdom, where similar legislation exists.
He noted that in 2018, the US enacted its Foreign Investment Risk Review Modernization Act to monitor and screen foreign capital, while the UK passed its National Security and Investment Act in 2021.
“Their obvious targets were Russia and China, with which they are in conflict,” Rodriguez said.
“The Philippine Congress can pattern an enabling law on foreign investments after the US and UK legislation if the proposed amendments to the Constitution’s economic provisions are ratified by the people in a plebiscite” he added.
The House of Representatives is set to approve on second reading this week and third and final reading next week the proposed economic Charter amendments, after which it would be transmitted to the Senate. (PNA)
