Chinese Migrants and the Philippines: The Need to Plug Legal Loopholes

The Philippines remains a highly attractive destination for xin yimin (Chinese immigrants). However, the country’s immigration policies have not kept pace with the growing influx of xin yimin. This outdated legislation has not only facilitated easier entry for Chinese immigrants but has also paved the way for widespread corruption. Corruption allegations against xin yimin have also tarred the reputation of locally born Chinese Filipinos. There is an urgent need to pass a new law to address corruption related to immigration.

The Philippine Immigration Act of 1940 (Commonwealth Act No. 613) was designed to control and regulate the immigration of aliens into the Philippines. It was enacted during the American occupation (1898 to 1946). Over the years, new laws were enacted to accommodate new immigrants, particularly those expected to bring in revenue through investments or retirement. The new provisions were introduced by the late President Ferdinand Marcos in 1985 and amended through the years. They sought to entice Filipino expatriates (those who had acquired new citizenship abroad) to return home and contribute to the country’s development. In practice, however, it opened the doors to xin yimin, who availed themselves of the new provisions to apply for residency.

More concerningly, the implementation of these laws by the Philippine Bureau of Immigration (BI) has become a source of corruption, with Chinese immigrants, regardless of status, being particularly vulnerable to extortion. While many enter the country with legitimate documentation, some have gained residency by circumventing or fulfilling requirements fraudulently through bribery. Such corrupt practices have adversely affected legal Chinese immigrants, as all Chinese immigrants — regardless of their legal or illegal status — are now viewed with deep suspicion. When BI raids Chinese establishments like malls in Manila’s Chinatown, all Chinese nationals become vulnerable to extortion by corrupt immigration agents. The changes introduced through the years have mostly sought to patch lapses in immigration laws. But they have failed to address the need for major reforms.

One of the amendments to the 1940 Immigration Act is Republic Act No. 7919 (RA 7919), passed in 1995, also popularly known as the “Alien Legalisation Law” because it granted legal residence status to aliens who had been staying in the country illegally prior to 30 June 1992. While RA 7919 had good intentions, it opened the doors to unqualified immigrants. Many who arrived after 1992, referred to as xinqiao (used in the Philippines to refer to xin yimin), exploited the law by fraudulently obtaining proof to claim they were in the country before 1992. This adversely affected the jiuqiao (old migrants), who had legally availed themselves of the amnesty but were subsequently conflated with those with doubtful status.

RA 7919, however, was just one of many ways Chinese immigrants circumvented the law. New provisions that provided investment and retirement visas were additional avenues exploited by the xinqiao through the use of “paper” (bogus) investments. Over the years, a network of BI agents and travel agents facilitated the entry of Chinese nationals through a system called baoguan (entry facilitation), further perpetuating corruption in the immigration process.

The extent of corruption within the BI has become a frequent subject of inquiry. In 2020, an extensive investigation into bribery, dubbed the “pastillas scam”, uncovered that bribes were being offered to airport immigration officers wrapped in white paper resembling “pastillas” (milk candy).

The extent of corruption within the BI has become a frequent subject of inquiry. In 2020, an extensive investigation into bribery, dubbed the “pastillas scam“, uncovered that bribes were being offered to airport immigration officers wrapped in white paper resembling “pastillas” (milk candy). It also revealed how syndicates, which were mostly Chinese with transnational networks, trafficked unsuspecting Chinese workers with promises of high pay, only for them to end up as prostitutes. The system also allowed the entry of syndicate members, including those on the Interpol watch list. The investigation led to 86 BI personnel being charged with corruption before the Office of the Ombudsman, alongside a proposal for an urgent re-examination of immigration law.

On 26 August 2022, after lengthy investigations into illegal immigrants, the House panel approved a proposal aimed at reorganising and modernising the 82-year-old charter of the BI. The proposal included redefining the BI’s powers and functions, further professionalising its organisation and increasing the compensation and benefits of its officials and employees. However, none of these proposals reached the third reading of the bill.

The proposed revisions did not take off due to the complexity and scope of overhauling the current system and the time-consuming legislative process. The latter requires the Office of the President to mark the legislation as urgent to fast-track the process. Ironically, this legislation is not considered a priority and not certified as urgent because Chinese nationals are the most affected.

In 2016, President Rodrigo Duterte (2016-2022) allowed the operation of Philippine Offshore Gaming Operations (POGO), which opened the doors to a huge influx of Chinese immigrants through visas on arrival. In recent months, the immigration/corruption issue has garnered renewed attention due to investigations into Chinese nationals in POGOs. Complaints of human trafficking, illegal detention, kidnapping, torture, extortion, and prostitution of Chinese workers have surfaced. Raidson POGO hubs began in March 2024 and continued until October. This prompted President Ferdinand Marcos Jr., during his State of the Nation address in July 2024, to officially declare that POGOs would be immediately banned, with POGO workers given until the end of the year to leave the country.

Of greater concern is the sensational inquiry into Alice Guo (Guo Huaping), a xinqiao and mayor of the municipality of Bamban in the province of Tarlac. Whether these investigations will result in new legislation remains to be seen, but mounting anti-Chinese reactions have seriously affected the business climate and unsettled the Tsinoys (Chinese Filipinos born and raised in the Philippines). Many Tsinoys fear becoming collateral damage, as Filipinos often fail to distinguish between immigrant Chinese and Tsinoys. Such misperceptions conflate all Chinese as violators of the law, but the reality is that not all of them are so.

There is an urgent need to review and draft an entirely new immigration law to close existing loopholes and minimise opportunities for illegal immigration. A new law should effect more severe penalties on those who circumvent the immigration laws and stringent punishment against BI personnel who capitalise on the immigration loopholes to empower violations. These are urgent priorities that could help address the many complicated issues surrounding the entry of illegal aliens.

2024/381