The Xinqiao in the Philippines: Image and Reality

Krysty Choi
25 October 2006

Early in the morning, 60-year-old Xu Ximing shuttles between his various businesses – a potato
farm, rubber plantations, fishponds and an orange grove. Everyday, from dusk till dawn, Xu and
his family of six work hard to keep the businesses running smooth. This is not just another day
in rural China, but Laos – Xu’s newfound home. Citing cheaper costs, Xu moved to Laos in
search of better economic opportunities, in turn providing the locals with employment. As
modernization slowly creeps its way into Laos within the next few years, Xu Ximing happily
awaits the day he can finally expand his business and begin trading overseas.1

Xu Ximing is not alone.

Over a period of two decades – from 1980 to 2000 – it is estimated that over a million Chinese
immigrants made their way to countries in East and Southeast Asia, the majority of which went
to Japan, Korea, Taiwan, Thailand and the Philippines.2 The “one million” estimate, however, is
rather conservative, with the number of illegal and overstaying immigrants yet to be fully
documented. In any case, the new immigrants have considerably increased the population of
overseas Chinese living in the region. Current estimates peg the number of overseas Chinese
(huaqiao) living abroad at 33 million, with nearly 80% residing in Asia – 75% of which can be
found in the Southeastern region.3

Indeed, there are Chinese people wherever the ocean waves touch.

Despite the current economic boom in China, immigrants are continuing to seek opportunities
elsewhere. With unemployment rising, intense competition and the high standard of living, more
and more people in China are starting to look abroad to seek a better life. As Dr. James Chin of
the Hong Kong University Center for Asian Studies pointed out, “In China there are too many
people to compete with. They are looking for new opportunities.”4 Just like their ancestors who
migrated to Southeast Asia in the 19th century, a new wave of immigrants from China is looking
south in search of a better future.

But could this future be tinged with trouble? Unlike their earlier counterparts, the new wave of
immigrants from China bring with them financial capital and business savvy. Whereas the
immigrants of the 19th century brought only physical strength, a few skills and boundless
bravery, these new immigrants have money and know-how – at times even degrees. According
to Chin, “about 15% of mainland immigrants are wealthy entrepreneurs and another 40% are
traders pooling their money to build up business. Technicians and managers recruited from
coastal provinces to work in factories comprise another 30%. The remainder includes sex
workers – willing and deceived – teachers, reporters and publishers.”5

As these new immigrants carve out a new life in their new homes, however, it seems that
uneasiness is spreading throughout the region. Wuttilert Narawitthayanurak, general manager of
Northern Intertrade and Service's Chiang Saen Bureau that handles trade between China and
Thailand, expressed the apprehension sweeping Thailand, saying, “People are still optimistic that
in the long run they will benefit from Chinese visitors and investment. But they worry that in the
future, with more and more Chinese, they will take over some sectors of the economy.”6 Other
countries in Southeast Asia are beginning to feel the tension as well. In Myanmar, for example,
some have begun talking about “sending the new Chinese packing one day.”7 In a region that
has had violent anti-Chinese riots in its past, such sentiments are never a good sign

In fact, the sentiments in Southeast Asia are symptomatic of a larger issue: the negative image of
the new wave of Chinese immigrants. Frank Pieke, in his working paper Community and
Identity in the New Chinese Migration Order, wrote, “The sudden growth of large-scale
migration … highlighted the new, much uglier realities of the new world migration order:
commercialization, professionalization, criminalization, human smuggling and trafficking,
forced labor, hyper-exploitation and opportunistic asylum seeking. The Chinese … suddenly
came to epitomize everything that was feared about international migration.”8 Though Pieke was
largely speaking of the European and American experience, it is a sentiment present in Southeast
Asia as well.

Significantly, the new immigrants find little to no acceptance from the well-established huaqiao
(overseas Chinese) communities existing in many of the countries in Southeast Asia. Rather, the
majority in the huaqiao communities shares the same negative sentiments as those harbored by
the locals. As such, “these Chinese communities are inadequately equipped, indifferent, or even
plainly hostile to the new immigrants. At the same time, the new immigrants present
opportunities and challenges that the established communities cannot ignore, such as cheap and
abundant co-ethnic labor, new forms and sources of criminality…”9

But just how deserved is this negative image? What Pieke points out is the association of the
negative effects of migration with the new migrants from China, though for certain these
negative effects are not limited to the Chinese migrants alone. Pieke identifies the large-scale
migration from China as a reason behind this sentiment, in a veritable “onslaught” that drives up
suspicion and fear in the hearts of the locals. This, however, does not necessarily mean that the
negative effects of migration are indeed the monopoly of the new Chinese migrants.

In Social Dimensions of International Migration, the Division for Social Policy and
Development of the United Nations wrote, “Public perceptions may reflect real issues and
problems, but they also reflect ignorance, prejudice and fear.... In the absence of reliable
statistics, the reality of migration is frequently distorted and half-truths or stereotypes guide most
[of] the perceptions that most citizens have of immigrants.”10 Could the same be said for the
negative image currently hounding the new wave of Chinese immigrants, particularly in
Southeast Asia? Is the image of the new Chinese immigrant accurate, or merely blown out of
proportion?

Such is the question that this paper intends to answer, but specifically in the Philippine setting.
Why the Philippines? Certainly, the aforementioned issues in Southeast Asia can just as well be
found within the Philippine setting. Indeed, the country is by no means new to the Chinese. In
fact, the Philippines is home to a well-established and integrated community of local Chinese,
also known as the Tsinoys. Save for the parian massacres during the Spanish era, the Philippines
has never experienced anti-Chinese riots such as those in Indonesia. This, however, does not
mean that there are no resentments harbored between the majority and the minority.

This resentment, perhaps, is best exemplified by a certain “inquirer” – one who, under the cloak
of internet anonymity, posted his strong sentiments against the new Chinese migrants in an
online forum found on the Philippine government website. Note, however, that though the
forum was on the government website, the following quotation is not necessarily that of a
government employee or representative. In response to the topic question, “anong masasabi
ninyo sa Chinese people?” (what do you think of the Chinese people?), “inquirer” wrote:

“Two to three decades ago progressive ang Pilipinas ng wala sa picture ng

Philippine economy ang mga Chinese. Ang masasabi ko sa mga Chinese sa
Pinas (sic), corrupt, smuggler … drug lord, kidnapper, tax evader, economic
saboteur and polluter.” 11 (Two to three decades ago the Philippines was
progressive when the Chinese were not in the picture of the Philippine economy.
What I can say about the Chinese in the Philippines, [they are] corrupt, smuggler
… drug lord, kidnapper, tax evader, economic saboteur and polluter.)

In a nutshell, the writer specifically referred to the Chinese who migrated into the Philippines
within the past three decades – in short the new immigrants from China, as opposed to the earlier
immigrants and the Tsinoys – as the main reason behind the economic slump that the country is
experiencing. Of course, such an opinion is not shared by all Filipinos. Nevertheless, the
existence of such sentiments is proof that the negative image of the xinqiao does exist and cannot
simply be wished away. In a way, “inquirer” has provided this paper with the very basic
perceptions that beset the image of the xinqiao.

Again, the question is this: how accurate and realistic is the image besetting the new Chinese
immigrant, specifically in the Philippine setting? Is there really truth to the accusations? Is this
image a product of reality, or, as the Division for Social Policy and Development of the United
Nations wrote, born of “ignorance, prejudice and fear”?

Who are the Xinqiao?

Xinqiao is a term widely used in Chinese newspapers in the Philippines – a spin-off of the oft-
used term, huaqiao. The name huaqiao is used to identify the overseas Chinese, often times
implying transience and an eventual return to China.12 Though many of the huaqiao never do
return to their native country, the term is still widely accepted in identifying the overseas
Chinese. The word xin in xinqiao means “new” in Mandarin, differentiating them from the
earlier migrants known as the jiuqiao (jiu being “old”). Colloquially, however, the xinqiao are
more popularly known in the Tsinoy community as the tai diok ka – Fujianese for “Mainlander”
– a term not without its negative connotations.

The need for such clear-cut differentiation is rather telling of the state of affairs between the
jiuqiao and Tsinoy on one side and the xinqiao on the other. The assimilated Tsinoys, in
particular, refuse to be associated with the newcomers, especially in the light of the latter’s
negative image in the press. Criminal activities linked to the xinqiao have been a cause of
consternation for the Tsinoys, given the lack of differentiation in local news reports.13 For the
Tsinoys who had labored to become more assimilated to and improve their standing in the local
community, such occurrences are obviously unwelcome.

Technically speaking, the xinqiao in the Philippines are those who migrated to the country from
the late 1970s to the present. However, it must be taken into consideration that the xinqiao of the
past decade are also different from those who arrived in the 1970s and 80s, with many of the 90s
immigrants coming in from Liaoning, Shandong and Jiangsu; the earlier migrants were mostly
from the southern-coast provinces of Fujian and Guangdong.14 In the paper, “Xinhuaqiao”:
What is the New? What is the Old?, Liao Chiyang described the xinqiao as having greater
knowledge of technology, often times with higher educational attainment compared to the earlier
immigrants. Moreover, many of these new immigrants bring fresh capital into the country,
engaging in small businesses.15

But why are they migrating, and to a developing country at that? In 2002, an article in the
Philippine Daily Inquirer by Raul Palabrica asked the same question. “Why are they
abandoning their own green pastures in favor of a place whose economic development is
nowhere near that of their homeland? Their optimism about future economic prosperity remains
strong in spite of the kidnappings, inadequate public infrastructure, corrupt government officials
and all the problems of governance that many Filipinos have cited as excuses for leaving the
country for supposedly greener pastures elsewhere in the world.”16

For one, doing business can be a lot easier out of the Mainland. Rules are much easier to deal
with in Southeast Asia compared to “red-tape-choked”17 Many of the xinqiao are not laborers,
but traders. “Most of them are not very poor but not very wealthy either. They are just running
business, trading commodities from south China.”18 Many of these traders can be found in
Divisoria establishments such as 168 Mall, Divisoria Mall and the newly opened Meisic. Unlike
the jiuqiao who were forced to leave China with barely the clothes on their backs, the xinqiao are
well-prepared to jump into business in the Philippines.

Also, the economic improvements in China aren’t exactly translating into better lives. The
intense competition in China is driving many of its people towards – to a certain degree – less
populated areas. Though China’s economic growth may be good for the country overall, many
are still finding it much easier to find a living in the Philippines and other Southeast Asian
nations. Just like Xu Ximing, the countries of Southeast Asia – including the Philippines – are
much more lax and charge less for those who intend to do business, generally speaking.19

But perhaps the biggest difference in the xinqiao is their confidence and – to some extent –
brazenness. As a minority, the jiuqiao and the Tsinoys are largely unwilling to do anything that
would jeopardize their image in Philippine society. In an old column entitled Crossroads,
Sinpino wrote, “We must avoid being the subject of public censure because criticisms against
one member of the community affects all of us.”20 Many of the xinqiao traders, on the other
hand, can be seen peddling their wares in the sidewalks of Chinatown, not to mention the
negative impact of the criminal actions of a few new immigrants on the entire community.

The Xinqiao’s Image: Perception and Reality

 There are a number of issues besetting the image of the xinqiao, primarily as seen through the
reports in media and at times through channels of public opinion – such as through online forums
on the Internet – none of them positive. Basically, these issues can be divided into four: illegal
immigration, corruption, criminal activities and economic threat. These four make up the
negative image hounding the xinqiao. How much of this is real, and how much is hype?

Illegal Immigration
Media is replete with news of immigrants from Mainland China arrested for their alien status,
quite possibly also because of the frequency with which the Bureau of Immigrations conducts
raids and sorties. On April 3, 2003, the Bureau of Immigrations arrested 282 illegal aliens,
according to the Manila Times.21 Three months later, the same newspaper announced that the
Bureau of Immigrations caught a total of 430 illegal immigrants.22 Clarifying the issue of
immigration can be rather complicated, considering the lack of specific and detailed data.
Identifying the exact number of migrants entering the Philippines each year is difficult, with
many undocumented aliens making their way into and through the Philippines.

To this date, estimating the exact number of illegal Chinese immigrants currently living in the
Philippines is rather difficult. Local authorities, however, peg the number of Chinese immigrants
who entered the country illegally in 1997 to 1999 at approximately 120,000.23 The Bureau of
Immigrations conducts crackdowns repeatedly in areas known for being hotspots of illegal
immigrants. There are actually a number of ways by which immigrants can circumvent the law
in the Philippines, the simplest of which is to enter the country via legal means – such as with a
tourist or student visa – then have the visa extended for as long necessary, allowing them to
overstay.24

The second way is through availing of the Amnesty Program initiated by then-commissioner
Miriam Santiago. In 1999, Congress passed Republic Act 7919, which gave aliens who have
been in the country prior to 1992 a legalized status. However, it was the exact same RA that
allowed illegal aliens who arrived in the country after 1992 to circumvent the law. Through
bribery, these new immigrants were able to avail of the amnesty, even if they failed the condition
of having entered and lived in the country prior to 1992, causing the amnesty program to fail
miserably. Others illegally attained the Special Investors Visa without actually making the
investment.25

Compared to the number of estimated illegal immigrants in the country, statistics show that in
the two decades from 1980 to 2000, 150,000 documented migrants and travelers made their way
into the Philippines through the proper port entries, making the Philippines the fifth largest
destination for migrants looking towards Southeast Asia.26 The number is conservative, though,
without accounting for the immigrants who entered the country illegally. Moreover, neither does
the number reflect those who enter through legal means then illegally overstayed.

Corruption
Related to the issue of illegal immigration is corruption. Cases of bribery done in order to
remain in the country and open businesses are not new. Certainly, corruption in the country is
not limited to the new migrants, but “the very fact that the people who offer the bribes are
Chinese adds an unsavory racial dimension into the problem. Many Filipinos simply generalize
that all Chinese are corrupt and these are bolstered by the stories of bribery mentioned above.”27
It is precisely the situation of the illegal immigrants that makes them ripe for corruption – at
times even harassment from certain corrupt law enforcers.

Routine raids conducted to arrest illegal immigrants become an opportunity to extort. Rather
than being the “masterminds” of corruption, these aliens are merely forced to go along with the
system in order to keep their livelihoods here. This in itself is not an excuse for corruption, but
the general image of the proud, wheeling and dealing new Chinese migrants is not at all
applicable. Rather, the “irregularities would not be possible without the connivance of corrupt
migration officials and employees who allow aliens to stay even if they are aware that the
residency is obtained fraudulently. These illegal aliens become vulnerable to extortion by
corrupt agents.”28

Criminal Activities
There are a number of issues particularly aligned with this. Drug syndicates, smuggling and
kidnapping are just some of the criminal activities that some new migrants have become
involved in. Media has repeatedly covered drug busts and operations that uncovered the shabu
labs in the country. The news, however, would rarely differentiate between the Chinese
nationals and the Chinese migrants and Tsinoys in the Philippines.29 One of the worst issues
regarding drug trafficking involved the cheap goods in malls such as 168 in Divisoria, which
Sen. Panfilo Lacson accused as a front for drugs.30

The Association of Stall Owners in 168 vehemently denied that the goods of the mall were very
cheap because they were merely fronting for a drug operation. A recent operation brought in K-
9 dogs to search for illegal drugs turned up nothing, finally vindicating the store owners from
allegations that their products are merely fronts for a much bigger and much more expensive
business.31 Also, the stall owners categorically denied that their goods are smuggled from China,
hence the very low price.

In a recent bust on 168 Mall, news reports quoted the President as praising the Bureau of Internal
Revenue and Bureau of Customs for the “biggest anti-smuggling bust in the nation’s history”,
with news reports noting that the agents were able to close down a number of stores and seize
smuggled goods.32 What the news didn’t report, however, was that few businesses were actually
closed down and the rest opened immediately on the day the imposed closure of the mall for
inspection was lifted.

On the issue of kidnapping, it was the infamous case of Jacky Rowena Tiu who was kidnapped
by a Chinese gang that gave rise to the idea that kidnapping rings are related to the Chinese as
well. It was the only documented case of Chinese new migrants involved in kidnapping. It was,
also, their first attempt. In any case, the kidnapping was foiled and the victim rescued. However,
news reports were less focused on the isolation of the case than on the fact that Chinese people
were also victimizing their fellow Chinese. A headline in the Philippine Star, for example, read
“Chinese Kidnappers Have Only Just Begun,” and “Kidnappers from China now Operating in
RP.”33

Economic Threat
The success of 168 Mall, Divisoria Mall and Tutuban Center all seem to focus on how new
migrants from China are threatening the local retailers. Since the inception of the said malls,
big-time retailers in the country claim that their businesses have suffered by as much as 20%.34
With prices at less than half of those sold in department stores, budgeting shoppers are flocking
to the cheaper Divisoria clusters, leaving less profit for conventional malls. The low prices have
invited suspicion, with mall owners and retailers in the country asking the Philippine Chamber of
Commerce and Industry to intervene on the suspicion that smuggled goods are sold in these new
malls. Donald Dee of the PCCI said, “The PCCI is not after shutting down the 168 operations;
our main concern is to know whether the goods being sold in that mall have entered our country
legally.”35

But as mentioned earlier, many of the stall owners in 168 had in fact already been absolved of
having smuggled goods after the raid last year. Moreover, the low prices are a boon to a “hard-
up public [who] welcome the influx of cheap goods.”36 Overhead costs, rather than smuggling,
may be the real reason for the difference in prices. One stall owner in 168 claims that the 180
pesos shirts he sells in his stall have to go for 270 pesos in a department store in which he also
rents space, simply because of the overhead costs involved.37 Rather than an economic threat,
the influx of cheap goods may be sufficient to tide over the less privileged.

Conclusion
The problems besetting the image of the xinqiao in the Philippines are, indeed, anchored on
reality, but only to a certain extent. On certain points, the negative image remains because of a
lack of clear data, as in the case of illegal immigration. This makes it much easier for the
negative image to thrive. With regards to corruption, it would be rather preposterous to pin the
blame on newcomers when the Philippines has been contending with this problem for years.
Criminal activities, on the other hand, are the work of a few. Despite media attention that seems
to highlight the ethnicity of the criminals, one must remember that more of the xinqiao are
actually in the country to do simple business. Lastly, the presence of malls such as 168 and
Tutuban should not be seen as an economic threat. It is, after all, able to provide the less
privileged with cheaper alternatives to those sold in malls.

As a whole, it may be said that the negative image of the xinqiao is largely a combination of
reality and fear inherent to locals who feel the encroachment of the newcomers. Though there
are real cases of xinqiao living up to these negative images, realize that for every xinqiao in that
mold, there are more who are here simply to eke out a living, in the same manner their ancestors
did. Whether we like it or not, globalization has made it easier for people around the world to
migrate and find new opportunities abroad. Instead of fearing and – to a certain degree –
loathing the xinqiao, we should find a way to safeguard our country’s interests but still be willing
enough to accept the changes that an increasing globalized world brings.

1
Denis Gray, “The Chinese Migration”, Portsmouth Herald, 4 April 2004. Retrieved 19 October 2006 from
http://www.seacoastonline.com/2004news/04042004/world/8936.htm
2
Jean Louis Rallu, “International Migration in South-East Asia: The Role of China”, paper presented at the IUSSP
Conference on Southeast Asia’s Population in a Changing Asian Context at Chulalongkorn University, Bangkok,
Thailand, 10-13 June 2002, p.11
3
Laurence Ma, “Space, Place and Transnationalism in the Chinese Diaspora”, in The Chinese Diaspora: Space,
Place Mobility and Identity, by Ma and Cartier, eds., Lanham, MD: Rowman & Littlefield Publishers, 2003, pp.1-49
4
David Fullbrook, “Chinese Immigrants and the Power of Guanxi”, Asia Times Online, 30 July 2004. Retrieved 19
October 2006, from http://www.atimes.com/atimes/Southeast_Asia/FG30Ae04.html
5
Ibid.
6
Ibid.
7
Ibid.
8
Frank Pieke, “Community and Identity in the New Chinese Migration Order”, Working Paper No.24 from the
Centre on Migration, Policy and Society, 2005, p.3
9
Ibid., p.5
10
“Social Dimensions of International Migration,” Division for Social and Policy Development, Department of
Economic and Social Affairs, United Nations. Available from
www.un.org/esa/population/publications/thirdcoord2004/P02_DSPD.pdf
11
“Anong masasabi ninyo sa mga Chinese people?”, The Official Website of the Republic of the Philippines, forum.
Available from http://www.gov.ph/forum/thread.asp?rootID=15909&catID=18
12
“Huaqiao”, The Encyclopedia of the Overseas Chinese, Harvard University Press, 1999. Available on HUP
Reference, http://www.hup.harvard.edu/features/reference/panenc/huaqiao.html
13
Teresita Ang-See, “Influx of New Chinese Immigrants to the Philippines: Problems and Challenges”, paper
presented at the 5th ISSCO Conference – Copenhagen, 10-13 May 2004. Available on ISSCO V – 5th Conference of
the International Society for the Study of Chinese Overseas , http://www.nias.ku.dk/issco5/panels.htm#8
14
Ibid.
15
(in Chinese) Liao Chiyang, “‘Xinhuaqiao’: What is the New? What is the Old?”, paper presented at the 5th
ISSCO Conference – Copenhagen, 10-13 May 2004. Available on ISSCO V – 5th Conference of the International
Society for the Study of Chinese Overseas , http://www.nias.ku.dk/issco5/panels.htm#11
16
Raul Palabrica, “Puzzling Inward Migration,” Philippine Daily Inquirer, 11 August 2002
17
David Fullbrook, op. cit.
18
Ibid.
19
Ibid.
20
Sinpino, “Avoid Being a Cause of Public Censure”, Orient News, 17 April 1980, c.f. Ang-See, Teresita, ed. The
Chinese Immigrants: Selected Writings of Professor Chinben See, Manila: KAISA Para sa Kaunlaran and Chinese
Studies Program of De La Salle University, 1992, p.28
21
“282 Illegal Aliens Arrested; 244 Deported,” Manila Times, 23 April 2003
22
“Immigration Agents Caught 430 Illegal Aliens This Year,” Manila Times, 23 July 2003
23
James Chin, Trends and Government Policies: Reducing Irregular Migration from China, 2002, p.3
24
Teresita Ang-See, “Preying on Aliens”, Tulay, 21 March 2000, p.9
25
Ibid.
26
Jean Louis Rallu, p.11
27
Teresita Ang-See, “Influx of New Chinese Immigrants to the Philippines: Problems and Challenges”, paper
presented at the 5th ISSCO Conference – Copenhagen, 10-13 May 2004. Available on ISSCO V – 5th Conference of
the International Society for the Study of Chinese Overseas , http://www.nias.ku.dk/issco5/panels.htm#8
28
Teresita Ang-See, “Preying on Aliens”, Tulay, 21 March 2000, p.9
29
Teresita Ang-See, “Influx of New Chinese Immigrants to the Philippines: Problems and Challenges”, paper
presented at the 5th ISSCO Conference – Copenhagen, 10-13 May 2004. Available on ISSCO V – 5th Conference of
the International Society for the Study of Chinese Overseas , http://www.nias.ku.dk/issco5/panels.htm#8
30
Joel Zurbano, “No Drugs Found in 168 Mall,” Manila Standard Today, 30 March 2006. Available at
http://www.manilastandardtoday.com/ContentLoader?page=police03_mar30_2006
31
Debbie Ann Tan, “168: Sounds Like Success”, Tulay, 19 September 2006, p.11
32
Genalyn Kabiling, “File Sabotage Raps against Smugglers, Tax Evaders”, Manila Bulleting Online, 2005.
Available from http://www.mb.com.ph/issues/2006/03/19/MAIN2006031959152.html
33
Romel Bagares, “Kidnappers from China now operating in RP,” Philippine Star, December 23, 2001; “Chinese
Kidnappers have only just began,” Philippine Star, December 24, 2001
34
Alex Vergara, “Tiangge Problem May be Mall Owners’ Creation”, Philippine Daily Inquirer, 30 April 2006.
Available from http://money.inq7.net/features/view_features.php?yyyy=2006&mon=05&dd=01&file=1
35
“PCCI to Probe 168 Malls,” The Manila Times, 18 February 2006. Available from
http://www.manilatimes.net/national/2006/feb/18/yehey/business/20060218bus7.html
36
Alex Vergara, op. cit.
37
Debbie Ann Tan, op. cit.