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Tuesday, May 20, 2008

 

RP contributes to China economy

By Go Bon Juan

Editor’s note: The Sixth Dr. Jose P. Rizal Awards for Excellence awarding ceremony will be held at 7 p.m., June 14, 2008, at the Kaisa-Angelo King Heritage Center on Anda and Cabildo streets, Intramuros, Manila.

Ideally, relations between two countries should be mutual, with benefits going both ways. But in a partnership between a big nation and a small one—or between a great power and an ordinary one—the bigger or more powerful partner normally enjoys an edge.

Take, for example, the relations between China and the Philippines. We always hear of the contributions to and influence of the Chinese on the Philippines, but seldom the other way around. But the fact is, the Philippines and the Filipino people have significantly influenced and contributed to China.

History books cite the important role of the galleon trade between Manila and Acapulco in the Philippine economy. But since most of the goods traded between Manila and Acapulco actually came from China, attention is usually given to the contribution of the Chinese and the Chinese goods to Philippine economy and not so much on the contributions to and influences of the galleon trade on China’s economy.

Professor Andrew Wilson’s Ambition and Identity: Chinese Merchant Elites in Colonial Manila, 1880-1916 (University of Hawaii Press, 2005) gives this interesting description of how the galleon trade contributed to and influenced China’s economy at the time: “Manila was the major entrepot for Sino-Spanish trade for the two centuries after its founding in 1571. Of all the Chinese products brought to Manila, silks and porcelains were the most sought after. To pay for Chinese manufactures, the Spanish exported huge amounts of silver from their Mexican and Peruvian mines. In 1597, for example, it was estimated that 345,000 kilograms of silver entered China via Manila. This exceeded the total amount of silver produced by China’s domestic mines in the preceding 50 years. Even in the 20th century, the Mexican silver dollar was still the dominant, albeit unofficial, means of exchange on the Chinese coast …

“For China, the material consequences of the Manila trade were spectacular. The discovery and exploitation of overseas markets for Chinese products catalyzed commercial expansion along the southeast coast. Demand created a boom in the trade networks of coastal China as suppliers scrambled to provide Fujianese and Cantonese merchants with exports. Demand raised prices and created fortunes for the ambitious, talented and lucky, leading to a significant change in Chinese culture and society in the late Ming era. The great prosperity traveled through China’s river systems and marketing networks, resulting in a general increase in wealth. The importance of household putting-out industries, especially in tea harvesting and sericulture, commercialized the rural economy and raised the value of domestic labor, particularly the value of female labor. These developments had wide-ranging consequences for Chinese society and the economy.”

It is clear from these passages that the contributions and influences of the galleon trade on China, both economically and financially, were so great that the course of China’s historical development might have changed dramatically without it.

So, although the Philippines may be small as a nation, it did make great contributions and influences on a bigger nation. Filipinos should be proud of this historic fact.

   

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