Exploring the global application of geoeconomics to advance strategic interests, Ateneo de Manila University Economics Professor Dr. Fernando Aldaba highlighted potential global strategic tools for the Philippines to harness amid power struggles between the United States (US) and China’s long-standing discord.  

Geoeconomics, as defined by Aldaba during the lecture, is the strategic use of economic instruments to exert influence and achieve national security.

In the national context, the Philippines remains one of the top recipients of Foreign Military Financing (FMF) in Southeast Asia, amounting to about $475.3 million, including military projects such as the turnover of four ScanEagle Unmanned Aerial System (UAS) for maritime patrol surveillance.

He also pointed out that the US has continued to deploy military aid domestically, deploying more than 650 naval vessels to the Philippines and participating in approximately 1,300 bilateral military engagements alongside Filipino partners since 2015.

“The US has delivered more than P57 billion worth of planes, ships, armored vehicles, and other military equipment and training to the Philippines,” Aldaba noted.

Thousands of  fisherfolk are already affected by the year-round maritime war exercises led by the US in the Philippines.

Meanwhile, China continues to invest through large-scale regional initiatives such as the Belt and Road Initiative (BRI), the Regional Comprehensive Economic Partnership (RCEP), the Asian Infrastructure Investment Bank (AIIB), the Digital Silk Road, and Resource Nationalism, to rival the US’ influence.

Aldaba revealed that the Chinese Military provided funding to the Philippines since the administration of former President Rodrigo Duterte in 2016, supplying equipment for counterinsurgency, patrol boats, and emergency gears. 

Despite China accounting for roughly twice the volume of Philippine exports, he explained that the US investments in the country are estimated to be five times those of China, positioning itself as the primary global influence in the country.

“In terms of trade, China is the bigger partner for us than the US. In terms of investments, the US has more investments than China.”

He also included examples of other Asian countries’ use of geoeconomics, such as South Korea’s Korean Wave (Hallyu), using cultural exports as soft power to achieve geopolitical goals and boost the economy and tourism, and Indonesia’s strategy that focuses on managing strategic natural resources.

Domestic adoption of geoeconomic tools for advancement

Aldaba stressed that, despite the Philippines being a small country, the use of geoeconomics is feasible as a domestic strategy.

“First is the strategic trade and industrial policy… we could find our niche in the global economy, for example we could have semi-conductors agribusiness,” shared Aldaba.

He also expressed that the country can equip itself in maritime and natural resource diplomacy by capitalizing on its fisheries, energy, and critical mineral assets in the West Philippine Sea, supporting the country’s advantages in regional negotiations and securing national interest protection.

“That’s the reason why China is very interested in the West Philippine Sea because of the energy and critical reserves found there.”

Expanding on other possible geoeconomic strategies, Aldaba also proposed digital & AI leadership, diaspora & service power, and alliance leverage as tools the Philippines can use.

“The Philippines have very much influence because a lot of the labor power comes from the Philippines, and even the care economy of the world. We have a lot of Filipino nurses, Filipino care workers—these are just some ways the Philippines can use geoeconomics,” stated Aldaba.

“Geoeconomics: Utilizing Economic Power for National Security” was held at Bapa Benny Tudtud Auditorium, Ateneo de Davao University, on January 29, 2026.