How China firms almost gained foothold in Subic
Credit to Author: Michael Punongbayan| Date: Sun, 2 Mar 2025 00:00:00 +0800
MANILA, Philippines — At least two giant Chinese firms almost took control of the former Hanjin Shipyard in Subic Bay in 2017 had it not been for the Duterte administration’s discreet maneuvering to have a US-based company co-founded by President Donald Trump’s deputy defense secretary nominee take over the facility.
This was according to former defense chief Delfin Lorenzana, who said that then president Rodrigo Duterte played a crucial role in preventing the Chinese firms from acquiring the Hanjin Subic Shipyard by paving the road for the facility’s takeover by Cerberus Capital Management, co-founded by US billionaire and Trump’s deputy defense secretary nominee Stephen Feinberg.
If the acquisition had pushed through, China would have practically gained control of a 300-hectare property strategically located near Metro Manila and the West Philippine Sea and secured a perfect vantage point for espionage, according to Lorenzana.
“It means that if the Chinese had taken control, the Chinese Communist Party would have embedded spies and personnel there to monitor and report whatever was happening in Subic,” Lorenzana told The STAR.
He noted that there is also a law in China that allows the military complete access to information from private businesses.
Immediately after Hanjin declared bankruptcy in 2017, Lorenzana said two Chinese shipbuilding companies quickly showed interest in taking control of the facility.
He recalled then finance chief Carlos Dominguez wondering aloud if the administration would be willing to hand the facility over to the Chinese, who were reportedly willing to take it at any price.
With Hanjin’s local debt then amounting to $412 million, Dominguez said he tried to offer the Subic facility to other companies, including South Korea’s Hyundai Heavy Industries (HHI) and some Japanese firms, but there were no takers.
Lorenzana said the Duterte administration then sought the help of the US embassy in finding a group that could take over the shipyard. He said that after almost five years, Cerberus took the offer.
“Cerberus is not a ship building company, it’s a fund manager,” Lorenzana said, adding that the US firm is now leasing the property to other firms including HHI, which is involved in shipbuilding and repairs.
The former Hanjin Subic Shipyard is now known as the Agila Subic Multi-use Facilities, with the northern portion of the property facing the sea now being utilized as a dock for Philippine Navy ships.
Lorenzana said the signing of a lease contract in Washington in 2022 should bely accusation against the former president that he was pro-China.
“President Duterte also did not want to give it to China,” he said.
Lorenzana also recalled Duterte asking Dominguez for the peso equivalent of $400 million, and was told that it was P23 billion. “You know what the president said? ‘We can shoulder it if there is no buyer,’” the former defense chief said.
“So if no buyer had come forward, it would not end up with the Chinese. The government would have bought it anyway. It was not the intention of president Duterte to give Hanjin to the Chinese. No, no, he’s no pro-China. He is pro-Filipino,” he added.