Cover Story: Chinese Gamble With Their Lives in the Philippines Amid Waves of Kidnappings

Manila was infamously dubbed the “kidnapping capital of the world” by international media in the 1990s due to rampant kidnappings by organized crime gangs and guerrilla groups. Over the years, kidnapping in the Philippines has become more complex and widespread, with Chinese nationals being the primary targets today[para. 1][para. 2][para. 3].

In 2021, the Philippine Strategic Associates reported that the Philippines ranked in the top 10% of the worst countries for kidnapping, with Chinese nationals comprising a significant portion of the victims. The country’s $5 billion gambling industry, remote locations, and a slow judicial process make it a haven for kidnappers, particularly targeting Chinese individuals who tend to avoid police involvement[para. 4][para. 5].

From January to October 2023, most of the 20 reported kidnappings in the Philippines had Chinese victims. Notably, in June, the kidnapping and subsequent deaths of two Chinese medical executives highlighted the dangerous trend of luring victims with fictitious business opportunities. This incident underscored the increasingly sophisticated strategies employed by kidnappers[para. 6][para. 7][para. 8][para. 9].

Chinese nationals are often kidnapped by other Chinese, as stated by Cai Zhiqun, vice director of the Manila Chinese Community Service Center. Earlier in 2023, a similar case involved a Chinese executive and his friend who were lured by a fake business proposition and subsequently kidnapped, with the ransom demanded in the cryptocurrency Tether (USDT)[para. 10][para. 11][para. 12].

The Philippines' history with kidnapping began in the 1990s, targeting local Chinese businesspeople. The surge in kidnappings was linked to the gambling industry's boom post-2010, attracting mainland Chinese and Taiwanese gangs who expanded into related criminal activities. The Philippine judiciary's leniency and widespread corruption within law enforcement further complicate efforts to combat these crimes[para. 26][para. 29].

The Philippine President Ferdinand Marcos Jr. recently banned online casinos, attributing their operations to financial scams, money laundering, and other crimes. Following this ban, the Bureau of Immigration ordered offshore gambling employees, many of whom are Chinese nationals, to leave the country within two months. This crackdown aims to curb the rise of kidnappings and associated crimes but might drive criminal activities to other regions[para. 31][para. 32][para. 33].

Chinese migration to Southeast Asia dates back to the mid-19th century, with a significant percentage engaging in vital economic sectors. The Filipino Chinese community faced frequent kidnappings in the early 1990s, gaining global media attention and resulting in protests for government intervention. The second wave of kidnappings started in 2010, often involving debts related to gambling[para. 55][para. 57][para. 58].

An influx of Chinese nationals followed the legalization of offshore gambling in the Philippines during President Duterte’s term. Along with economic contributions, there was a rise in crimes associated with these new immigrants[para. 81][para. 85].

Kidnappers now favor cryptocurrency like USDT for its stability, anonymity, and ease of transfer, making it ideal for their illegal activities. The United Nations Office on Drugs and Crime noted that stricter capital controls and pandemic restrictions in Southeast Asia have led criminals to prefer virtual currencies for money laundering[para. 98][para. 99][para. 100].

Chinese victims’ reluctance to engage with police exacerbates the issue, with most cases remaining unresolved. Out of 102 recorded kidnapping cases related to offshore gambling since 2019, only one proceeded to a court verdict[para. 112][para. 113]. This complicates justice efforts further as victims often avoid returning to the Philippines for legal processes, preferring to pay ransoms and leave the region[para. 114].