Undocumented Chinese Workers, Hazardous Steel Raise Security Concerns in PHIVIDEC

CAGAYAN DE ORO CITY, Philippines (May 18) — What initially appeared to be a simple labor and immigration violation inside a steel manufacturing plant in Misamis Oriental has rapidly escalated into a broader national security and public safety investigation involving undocumented Chinese nationals, hazardous industrial materials, alleged illegal operations, and renewed government crackdowns against foreign-linked syndicates operating in the country.

Authorities on May 16 raided the Philippine Sanjia Steel Corporation plant inside the PHIVIDEC Industrial Authority in Tagoloan, Misamis Oriental, where they discovered 69 Chinese nationals and one Filipino allegedly working illegally while handling potentially hazardous materials.

The operation was jointly conducted by the Armed Forces of the Philippines (AFP), the Presidential Anti-Organized Crime Commission (PAOCC), the National Bureau of Investigation (NBI), the Philippine National Police (PNP), and other law enforcement agencies under the supervision of Defense Secretary Gilberto Teodoro Jr..

Initial findings showed workers inside the facility were engaged in the melting and processing of imported and locally sourced steel reportedly classified by investigators as hazardous and potentially substandard. Authorities warned that the materials being processed could pose risks not only to workers and nearby communities, but also to public infrastructure if the steel products eventually enter the local construction market.

Government investigators have yet to publicly disclose the exact chemical composition of the materials recovered from the site. However, reports indicated that even local police personnel were initially prevented from entering portions of the compound due to possible contamination risks and safety concerns.

Defense officials also ordered comprehensive medical examinations for workers and responders exposed during the operation amid fears of prolonged contact with hazardous substances.

The steel plant has drawn deeper scrutiny after authorities linked it to controversial Chinese businessman Tony Yang, brother of Michael Yang, the former economic adviser of ex-president Rodrigo Duterte. Tony Yang had previously been associated with Philippine Offshore Gaming Operator (POGO)-related activities and earlier controversies involving undocumented foreign operations in the country.

“What we have here is a case of prima facie undocumented illegal aliens working here,” Teodoro said during the inspection, questioning how the facility continued securing permits despite existing legal controversies surrounding its ownership and operations.

The discovery comes amid intensified government crackdowns against undocumented Chinese nationals, illegal POGO-linked activities, suspected economic sabotage, and foreign operations increasingly viewed through a national security lens.

Over the past two years, Philippine authorities have dismantled several alleged illegal operations involving Chinese nationals, including scam hubs, underground POGO facilities, hazardous material warehouses, and unauthorized industrial activities. Earlier this year, authorities in Pampanga also arrested Chinese nationals linked to the seizure of hazardous materials worth nearly P20 million.

The PHIVIDEC case has further alarmed security officials because the industrial estate falls under a government-owned and controlled corporation supervised by the Department of National Defense and lies near areas being eyed for future naval defense expansion in Northern Mindanao.

Teodoro has ordered a review of all registered locators operating within the PHIVIDEC Industrial Estate and warned individuals against interfering with the ongoing investigation, stressing that any attempt to obstruct lawful operations would be dealt with accordingly.

Beyond immigration violations, authorities are now investigating possible environmental violations, labor law breaches, unsafe industrial practices, illegal employment, economic sabotage, and potential national security implications tied to foreign-controlled operations.

The raid reflects the government’s growing concern over undocumented foreign nationals operating in sensitive industries at a time when tensions between the Philippines and China continue to escalate in the West Philippine Sea.

For authorities, the issue is no longer viewed simply as illegal employment.

It is increasingly being treated as a question of sovereignty, industrial safety, national security, and the extent of foreign influence quietly operating inside critical Philippine industries.-Editha Z Caduaya