is now pullulated with thousands of prospering Chinese-owned Filipino stock brokerage houses and publicly traded companies. Like much of Southeast Asia, Filipinos of Chinese ancestry
dominate the Filipino economy and commerce at every level of society. Chinese Filipinos collectively wield and uniformly demonstrate a disproportionatly high level of economic achievement and clout relative to their small population size over their indigenous Filipino majority counterparts while also playing a critical role in maintaining the country's economic vitality and prosperity. With their powerful economic prominence, the Chinese virtually make up the country's entire wealthy elite. Chinese Filipinos, in the aggregate, represent a disproportionate wealthy, market-dominant minority not only form a distinct ethnic community, they also form, by and large, an economic class: the commercial middle and upper class in contrast to their poorer indigenous Filipino majority working and underclass counterparts around them. The Chinese have had a significant presence in Filipino business and industry, having been at the forefront of controlling the economy of the Philippines for many centuries long before the Spanish and American colonial eras. Long before the
Spanish conquest of the Philippines, Chinese merchants carried on trading activities with native communities along the coast of modern mainland China. By the time the Spanish arrived, the Chinese controlled all the commercial trading activities across the Philippines, serving as retailers, artisans, and food providers for various Spanish settlements. Total resources of banking capital held by the Chinese was US$27 million in 1937 to a high of US$100 million in the estimated aggregate, making them second to the Americans in terms of total foreign capital investment held. Mainly attracted and lured by the promise of bountiful economic opportunities brought upon by the auspices of American colonial influence during the first four decades of the 20th century actuated the Chinese to vigorously assert and ultimately secure their domains of economic power fostered amongst their entrepreneurial activities and investment pursuits. The implementation of a free trade policy between the Philippines and the United States allowed the Chinese to capitalize on the growth of a burgeoning Filipino consumer market. As a result, Filipino entrepreneurs and investors of Chinese ancestry were able to capture a significant market share across the country by expanding their commercial business activities in which they were the key players who ventured into then newly emerging industries such as industrial manufacturing and financial services. The American and Spanish colonizers who saw the indispensable benefit of the enterprising Chinese, harnessed their commercial expertise, contacts, capital, and presence to serve and protect their colonial economic interests. Chinese-owned sari-sari stores that cropped up all over the Philippines were utilized to distribute and supply American and cheap Chinese-made Filipino goods and raw materials with the finished products purposed for the eventual export to the American and other foreign markets overseas. The conspicuous presence of the Chinese that permeated throughout the textual fabric of daily Filipino economic life incurred the volatile emotions and hostility of the indigenous Filipino masses manifested in the form of animosity, bitterness, envy, grievance, insecurity, and resentment. Up until the 1970s, many of the Philippines's biggest corporations and commercial economic activities had long been under the control of the Americans and Spaniards. Since the 1970s, a significant shift has occurred in the commercial economic sector of the Philippines, whereby numerous Filipino enterprises previously owned by Americans and Spaniards came under the control of the Chinese, who have collectively emerged and established themselves as the country's most dominant economic force. Although the modern Chinese community in the Philippines amounts to 1 percent of the country's entire population, they are estimated to effectively control 60 to 70 percent of the modern Filipino economy. The enterprising Chinese minority, comprising 1 percent of the total population of the Philippines, control the country's largest and most lucrative department stores, supermarkets, hotels, shopping malls, airlines, and fast-food restaurants in addition to all of its major financial services providers, banks and stock brokerage houses, as well as dominating the nation's wholesale distribution networks, shipping lines, banks, construction, textiles, real estate, personal computer, semiconductors, pharmaceutical, mass media, and industrial manufacturing industries. Filipinos of Chinese ancestry also control 40 percent of the Philippine's national corporate equity. Filipinos of Chinese ancestry are also involved in the processing and distribution of pharmaceutical products. More than 1000 companies are involved in this industry, with most being small and medium-sized businesses amounting to an aggregate capitalization of ₱1.2 billion. Filipinos of Chinese ancestry are also prominent players in the Filipino mass media sector, as the Chinese control six out of the ten English-language newspapers in Manila, including the one with the largest daily circulation. The Chinese also dominate the Filipino telecommunications industry, where one of the current significant players in the Filipino telecom sector was the business taipan
John Gokongwei, whose conglomerate
JG Summit Holdings controlled 28 wholly owned subsidiaries with interests ranging from food and agro-industrial products, hotels, insurance agencies, financial services providers, electronic components, textiles and garment manufacturing, real estate, petrochemicals, power generation, printing, newspaper publishing, packaging materials, detergents, and cement mixing. Gokongwei's family firm is one of the six largest and most well-known Filipino conglomerates that has been under the hands of an owner of Chinese lineage. Gokongwei began his business career by starting out in food processing during the 1950s, venturing into textile manufacturing in the early 1970s, and then cornered the Filipino real estate development and hotel management industries by the end of the decade. In 1976, Gokongwei established Manila Midtown Hotels and has since then assumed the controlling interest of two other hotel chains, Cebu Midtown and Manila Galleria Suites respectively. Gokongwei's eldest daughter became publisher of the newspaper in December 1988 at the age of 28, at which during the same time her father acquired the paper from the Roceses, a Spanish Mestizo family. Of the 66 percent remaining part of the economy in the Philippines held by either Chinese or indigenous Filipinos, the Chinese control 35 percent of all total sales. Filipinos of Chinese ancestry control an estimated 50 to 60 percent of non-land share capital in the Philippines, and as much as 35 percent of total sales are attributed to the largest public and private firms owned by the Chinese. Many prominent Filipino companies that are Chinese-owned focus on diverse industry sectors such as semiconductors, chemicals, real estate, engineering, construction, fibre-optics, textiles, financial services, consumer electronics, food, and personal computers. A third of the top 500 companies publicly listed on the
Philippines Stock Exchange are owned by Filipinos of Chinese ancestry. Of the top 1000 firms, Filipinos of Chinese ancestry control 36 percent of them and among the top 100 companies, 43 percent. Between 1978 and 1988, 146 of the country's 494 top companies were under Chinese ownership. In 1990, the Chinese controlled 25 percent of the top 100 businesses in the Philippines and by 2014, the share of top 100 firms owned by them grew to 41 percent. In addition, Chinese-owned Filipino companies account for 66 percent of the sixty largest commercial entities. In 2008, among the top ten wealthiest Filipinos, 6 to 7 were of Chinese ancestry with Henry Sy Sr. having topped the list with an estimated net worth US$14.4 billion. In 2015, the top 4 wealthiest people in the Philippines (with 9 being pure-blooded Han Chinese in addition to 10 out of the top 15) were of Chinese ancestry. Filipinos of Chinese ancestry exert a considerable influential foothold across the Filipino industrial manufacturing sector. With respect to delineating the parameters by industry distribution, Chinese-owned manufacturing establishments account for a third of the entirety of the Filipino industrial manufacturing sector. In the secondary industry, 75 percent of the country's 2500 rice mills were Chinese-owned. Chinese Filipino entrepreneurs were also dominant in wood processing, and accounted for over 10 percent of the capital invested in the lumber industry and controlled 85 percent of it as well as accounting for 40 percent of the industry's annual output propagated through their extensive control of nearly all the sawmills throughout the country. Emerging import-substituting light industries induced the active participation and ownership of Chinese entrepreneurs being involved in various several salt works in addition to a large number of small and medium-sized producers engaged in food processing as well as the production of leather and tobacco goods. The Chinese also hold enormous sway over the Filipino food processing industry with approximately 200 outlets being involved in this sector alone predominating the eventual export of their finished products to Hong Kong, Singapore, and Taiwan. More than 200 Chinese-owned companies are also involved in the production of paper, paper products, fertilizers, cosmetics, rubber products, and plastics. In 1965, the Chinese controlled 32 percent of the country's top industrial manufacturing outlets. Of the 259 industrial manufacturing establishments belonging to the top 1000 that operated throughout the entire country, the Chinese owned 33.6 percent of the top manufacturing companies as well as 43.2 percent of the top commercial manufacturing outlets in 1980. By 1986, the Chinese controlled 45 percent of the country's top 120 domestic manufacturing companies. These manufacturing establishments are mainly involved in the production of tobacco and cigarettes, soap and cosmetics, textiles and rubber footwear. The outlet today continues to remain as one of the country's most famous and beloved fast food franchises. Jollibee's popularity around the country has since then led to the expansion of its corporate presence throughout the world by establishing subsidiaries in the Middle East, Hong Kong, Guam, and other Southeast Asian countries such as Brunei and Indonesia. The chain has since evolved into the
Jollibee Foods Corporation with the company having expanded gradually its corporate operating presence throughout mainland China as evidenced by its foreign acquisition of the Chinese fast food chain Dim Sum in 2008. In the beverage sector,
San Miguel Corporation is among the Philippines's most prominent beverage providers. The company was founded in 1851 by Enrique María Barretto de Ycaza y Esteban and is responsible for supplying the country's entire beverage needs. Two Chinese-owned Filipino beverage companies, namely Lucio Tan's
Asia Brewery and John Gokongwei's
Universal Robina, along with several lesser-known beverage companies are also now competing with each other to capture the largest share in the Filipino beverage market. In 1940, Filipinos of Chinese ancestry were estimated to control 70 percent of the country's entire retail trade and 75 percent of the nation's rice mills. By 1948, the economic standing of the Chinese community began to elevate even further allowing them to wield considerable influence by expanding their commercial business presence across the Filipino retail industry. As the Chinese community exercised a considerable percentage of the total commercial investment, including the command of 55 percent of the Filipino retail trade and 85 percent of the country's lumber industry at this time. After the end of the
Second Sino-Japanese war, Chinese Filipinos controlled 85 percent of the nation's retail trade. The Chinese also presided over 40 percent of the retailing imports coupled with substantial controlling interests in banking, oil refining, sugar milling, cement, tobacco, flour milling, glass, dairy farming, automobile manufacturing, and consumer electronics. Although the Filipino Hacienderos owned an extensive array of businesses, Filipinos of Chinese ancestry greatly augmented their economic power coinciding with the pro-market reforms of the late 1980s and 1990s initiated by the
Marcos administration. As a result, the Chinese gradually increased their commanding role in the domestic Filipino commercial retail sector over time by acting as an intermediary in connecting Chinese-owned Filipino retailers to the masses of indigenous Filipino consumers through the exchange of various goods and services. The Chinese Filipino business community accomplished such commercial feats as a tight-knit group in an enclosed system via
vertical integration by setting up their own supply chains, distribution networks, locating key competitors, making use of geographical coverage, attributes and characteristics, business strategies, staff recruitment, store proliferation, and establishing their own independent trade organizations. Every
small, medium, and
large enterprise in the Filipino retail sector is now completely under Chinese hands as they have been at the forefront at pioneering the modern and contemporary development of the Philippines's retail sector. From the 1970s onward, Filipino entrepreneurs of Chinese ancestry have re-established themselves as the dominant players in the Filipino retail industry with the community having achieved a collective corporate feat of presiding an estimated 8500 Chinese-owned retail and wholesale outlets that predominate across various metropolitan areas the country. Filipino entrepreneurs of Chinese ancestry control 35 percent to upwards to two-thirds of the domestic sales among the country's 67 largest commercial retail outlets. By the 1980s, Filipino entrepreneurs of Chinese ancestry began to expand their business activities by venturing into large-scale retailing. Chinese-owned Filipino retail outlet's today are among the single largest owners of department store chains in the Philippines with one prominent example being
Rustan's, which is one of the country's most prestigious department store brands. Other prime retailers such as
Shoe Mart owned by
Henry Sy and John Gokongwei's
Robinson's percolated rapidly throughout major cities around the country, with the products that they retailed having made their way into the shopping malls situated across various parts of the Manila Metropolitan area. Aside from taking over the Philippines's tobacco distribution networks, Tan has since parlayed his business interests into a corporate conglomerate behemoth of his own
LT Group Inc.. His corporate empire presides over a portfolio of diversified business interests including chemicals, sports, education, brewing, financial services, real estate, hotels (
Century Park Hotel), in addition to his company having purchased a majority controlling interest in
PAL, one of the Philippines's largest airlines. In terms of industry distribution, small and medium size Chinese-owned retailers account for half of the Philippines retail trade, with 49.45 percent of the retail sector alone being controlled by Henry Sy's Shoemart, and the remaining share of the retail trade being dominated by a few larger Chinese-owned Filipino umbrella retail outlets that include thousands of smaller retail subsidiaries. From small trade cooperatives clustered by hometown pawnbrokers, Filipinos of Chinese ancestry would go on to establish and incorporate the largest financial services institutions in the country. Filipinos of Chinese ancestry have been the chief pioneering influence in the Filipino financial sector as they dominated the country's financial services domain and have had a presence in the country's banking industry since the early part of the 20th century. The two earliest Chinese-founded Filipino banks were
China Bank and the Mercantile Bank of China, established in 1920 and 1924 respectively.
Dee C. Chuan, one of the most high-profile Filipino businessmen of Chinese ancestry at the time, played a key role in initiating the establishment of
Chinabank, as he remained adamant in establishing a financial services institution that was specifically tailored to serve the needs of the Chinese Filipino business community. Following the country's rapid parallel economic shift at the time towards the burgeoning industrial manufacturing sector prompted the Chinese business community to concurrently venture into the nascent banking and financial services sector. In 1956, there were four Chinese-owned Filipino banks, nine by 1971, sixteen in 1974, with the Chinese holding majority stakes in 10 of the 26 private commercial Filipino banks by the early 1990s. Of these six banks, the Chinese collectively control 63 percent of the aggregate assets among the top ten banks in the country. With Sy having assumed majority ownership of Banco de Oro, a commercial bank as well as acquiring a 14 percent stake in the
China Banking Corporation, he also took a controlling interest in the
Philippine National Bank, and 7 percent of the
Far East Bank. By 1970, among the Philippines's five largest banks holding almost 50 percent of all assets in the industry, namely
China Banking Corporation,
Citibank, the
Bank of the Philippine Islands,
Equitable PCI Bank, in addition to the formerly government-owned
Philippine National Bank came under the control of Chinese shareholders. In 1993, Chinese-owned Filipino banks controlled 38.43 percent of the total assets in the private Filipino commercial banking sector. By 1995, banks owned by Filipinos of Chinese ancestry had captured an even greater market share of the Philippines's financial services sector after the formerly government-owned
Philippine National Bank was partially privatized, along with four of the top five banks that were substantially controlled by Chinese shareholders claiming 48 percent of all bank assets and over 60 percent of all those held by private domestic commercial banks. Tan has since then solidified a commanding presence in the Filipino banking sector towards the beginning of the new millennium when he continued his corporate onslaught through the buyout, absorption, and subsequent merger of Philippine National Bank with his own bank,
Allied Bank. There are also 23 Filipino insurance agencies that are Chinese-owned, with some branches operating overseas and in Hong Kong. Initially, the Chinese were not allowed to own land until formally acquiring Filipino citizenship in the 1970s, which eventually permitted them to be granted with the same economic rights, freedoms, and privileges as their indigenous Filipino counterparts. In the aftermath of such a historically significant legal change that occurred throughout the Filipino geopolitical landscape at this time, its reverberating ramifications afterwards soon led to an upsurge of massive land purchases throughout the country predominated by Filipino investors of Chinese ancestry which started by the next decade following the country's political transition from a dictatorship to a democracy. Since the 1980s, Filipino businessmen and investors of Chinese ancestry have cornered much of the Philippines's real estate investment markets, land, and property development sectors, when much of the industry's grasp had long been held by the Spaniards. Chinese-owned Filipino real estate companies have devoured large swathes of prime commercial and residential real estate across Metro Manila and other urban Filipino cities utilized for the exploitative purposes of profit through commercial property development and investment. Presently, many of the biggest real estate development operators in the Philippines are owned by Filipino businessmen and investors of Chinese ancestry following the exodus of the Spanish Filipino Mestizo landowning elites such as the Araneta's, Ayala's, Lopez's, and Ortiga's. Of the 500 real estate companies operating in the Philippines, 120 are owned by Filipinos of Chinese ancestry with the firms mostly specializing in real estate investment, land, and property development, in addition to construction having much of their commercial presence mainly being concentrated in the Manila Metropolitan area. Well-known real estate companies controlled by some of the Philippines's most high-profile businessmen and investors include
SMDC owned by the Sy's,
Robinsons Land by the Gokongwei's,
Megaworld Properties & Holdings Inc. which is controlled by
Andrew Tan,
Filinvest that is commanded by the Gotianun's, and
DoubleDragon Properties, presided by businessman
Edgar Sia II of
Mang Inasal fame. Besides being responsible for spearheading the pioneering development and growth of the Philippines's modern real estate industry, both Sy and Tan have been generous patrons of the mainland Chinese on top of the local Chinese Filipino community, ardently extending their philanthropic hospitality by actively investing in the economic development and revitalization of their ancestral hometowns back in China. With Sy constructing supermalls in Chengdu, Chongqing, and Suzhou and Tan developing a 30-story banking center in Xiamen. Besides sharing a common ancestry, cultural, linguistic, and familial ties, many Filipino entrepreneurs and investors of Chinese ancestry are particular strong adherents of the Confucian paradigm of
interpersonal relationships when doing business with each other, as the Chinese believed that the underlying source for entrepreneurial and investment success relied on the nurturing of personal relationships. With the spectacular growth of varying success stories witnessed by a number of individual Chinese Filipino business tycoons and investors have allowed them to expand their traditional corporate activities beyond the Philippines to forge international partnerships with increasing numbers of expatriate Mainland and Overseas Chinese investors on a global scale. Instead of quixotically diverting excess profits elsewhere, many Filipino businesspeople of Chinese ancestry are known for their penurious and parsimonious ways by eschewing improvident lavish extravagances and frivolous
conspicuous consumption but instead adhere to the Chinese paradigm of being
frugal by pragmatically, productively, and methodically reinvesting substantial surpluses of their business profits devoted for the purpose of commercial business expansion and performing the acquisition of cash flow producing and income-generating assets. A sizable percentage of the conglomerates managed by capable Filipino entrepreneurs and investors of Chinese ancestry that are armed with the necessary managerial capabilities, enterprising disposition, commercial expertise, entrepreneurial acumen, investment savvy, and visionary foresight were able to germinate from small budding enterprises to making headway into gargantuan corporate leviathans garnering widespread economic influence across the Philippines, Southeast Asia, and the global financial markets. Underlying resentment and bitterness from the impoverished Filipino majority has been accumulating as there has been no existence of indigenous Filipino having any substantial business equity in the Philippines. The rise of economic nationalism among the impoverished indigenous Filipino majority prompted by the Filipino government resulted in the passing of the Retail Trade Nationalization Law of 1954, where ethnic Chinese were barred and pressured to move out of the retail sector restricting engagement to Filipino citizens only. These policies ultimately backfired on the government as the laws had an overall negative impact on the government tax revenue which dropped significantly because the country's biggest source of taxpayers were Chinese, who eventually took their capital out of the country to invest elsewhere. Anti-Chinese sentiment among the indigenous Filipino majority is deeply rooted in poverty but also feelings of resentment and exploitation are also exhibited among native and mestizo Filipinos blaming their socioeconomic failures on the Chinese. ==Future trends==