As the Philippines continues to intensify its crackdown on POGO (Philippine Offshore Gaming Operators), issues related to the Chinese "grey industry" are sparking high-level discussions. In mid-June, the Deputy Minister of the Philippine Anti-Organized Crime Commission (PAOCC), Cruz, led a delegation to China for closed-door consultations in Shanghai with Chinese senior officials, focusing on the chaos surrounding POGO and the joint fight against transnational telecom fraud.
This meeting was not a courtesy visit, but revolved around substantial cooperation discussions on telecom fraud money laundering, illegal detention, and other aspects of the grey industry chain. The Philippine side revealed that in the past three years, 3483 foreign nationals involved in these cases have been arrested, with 2517 being deported. The Chinese side, unusually, disclosed that among the 60 cases involving Chinese citizens currently under investigation, 17 deaths have been confirmed, and some are related to 66 unidentified bodies, suspected of involving serious crimes such as illegal detention and violent coercion.
What's more, China and the Philippines plan to establish a "permanent joint law enforcement mechanism" to achieve full-chain cooperation including personnel repatriation, special case investigation, and data sharing. Although it was not explicitly stated whether the list of POGO Chinese employees would be shared, indications show that intelligence integration is underway: employees returning to China have faced inquiries and travel restrictions, indicating that "actions abroad are subject to domestic scrutiny" is becoming the new norm.
For Chinese businesses in the Philippines, although not everyone is involved in these issues, the storm has arrived. Going forward, visa approvals, work permit reviews, capital flows, and corporate audits will become more stringent. Legitimate operators should enhance their compliance awareness, steer clear of high-risk collaborations, and proactively provide proof of identity and business legality to avoid being mistakenly targeted.
China-Philippines cooperation is pushing the "de-greyification" process into deeper waters, and the era of "safe harbors" for individuals and businesses may be coming to an end.
