CHINA promised to reduce its trade gap with the Philippines by increasing imports during a bilateral meeting in Beijing, where President Rodrigo Duterte is on his fifth state visit, according…READ
CHINA promised to reduce its trade gap with the Philippines by increasing imports during a bilateral meeting in Beijing, where President Rodrigo Duterte is on his fifth state visit, according to the Department of Trade and Industry (DTI).
In a statement on Friday, the Trade department said Chinese President Xi Jinping had “reiterated China’s policy to help balance trade with the Philippines by buying more goods, especially agriculture and agri-based products and industrial goods.”
Chinese Commerce and Finance Minister Zhong Shan echoed the policy during a meeting with Trade Secretary Ramon Lopez, it added.
As of end-June, Chinese imports reached $1.93 billion, while Philippine exports to the East Asian country reached $824.85 million, according to the Philippine Statistics Authority. This translated to total trade worth $2.75 billion and a $1.1-billion trade gap in favor of China.
Exports to China have been growing by an average of 10 percent in the last three years, the DTI said, adding that Chinese firms were also urged to investment in the Philippines to boost job opportunities and production.
Lopez said direct investments from China had been showing “very positive” momentum, increasing sixfold in the last three years.
Major projects in heavy industries — petrochemical, iron and steel — and other sectors, including textile, construction, technology-based services, agribusiness, energy, power, transportation, infrastructure and tourism, were eyed by Chinese firms.
For the tourism industry, Chinese officials were upbeat that more Chinese tourists would be visiting the Philippines and other Asian countries.
Chinese tourist arrivals in the country is expected to reach 1.5 million this year, compared with 1.2 million in 2018 and half a million in 2015.
China is also looking forward to working with the Philippines in various fields, including infrastructure and finance, education, agriculture, science and technology, security, and eliminating transnational crimes and illegal drugs.
The Trade department was to hold a business forum, with about 300 Chinese and Filipino businessmen expected to attend on Friday.
During a bilateral meeting between President Rodrigo Duterte and Xi on Thursday, six agreements were signed as proof of “the trust respect and pursuit of mutual benefit” that the two countries have been building over the last three years.
These are:
1. A memorandum of understanding (MoU) on higher education cooperation between the Commission on Higher Education and China’s Ministry of Education;
2. An MoU on science and technology cooperation between the Department of Science and Technology and China’s Ministry of Science and Technology;
3. A cooperative agreement between the Bureau of Customs (BoC) and the General Administration of Customs of China on the implementation of an intergovernmental deal on cooperation and mutual assistance in customs matters;
4. The implementation contract on a China-aid container inspection equipment project between the BoC and the Chinese Ministry of Commerce;
5. “Exchange of Notes on Cooperation Procedure for the Availment and Utilization of [a] Concessional Loan under a Renminbi-denominated Loan Facility between the DoF (Department of Finance) and [the] China International Development Cooperation Agency;” and
6. “Preferential Buyer’s Credit Loan Agreement of Project Management Consultancy of the Philippine National Railways’ (PNR) South Long Haul Project between the DoF and the Export-Import Bank of China.”
Loans to promote development
In a statement on Friday, the Finance department said Customs Commissioner Rey Leonardo Guerrero and Chinese Customs Minister Ni Yuefeng signed the third deal; Guerrero and Commerce Minister Zhong Shan, the fourth; Foreign Affairs Secretary Teodoro Locsin Jr. and his Chinese counterpart Wang Yi, the fifth; and Finance Secretary Carlos Dominguez 3rd and Export-Import Bank of China Vice President Xie Ping, the sixth, which is worth $219 million.
According to the DoF, the deal on the renminbi-denominated loan facility confirmed the cooperation procedures and arrangements that would allow Manila to avail itself of Chinese concessional loans.
“This loan facility…will help support the Duterte administration’s major projects that will promote economic and social development,” it said.
On the last deal, the DoF said the “ dollar-denominated loan has an interest rate of 2 percent per annum with a maturity period of 20 years, inclusive of a seven-year grace period.”
It also said the services the project management consultancy would render cover the detailed engineering and design; preparation of the terms of reference and bidding documents for a design and build procurement for the civil works, rolling stock and electromechanical system; and construction supervision.
The consultancy will also provide tender assistance, which includes market study, administration of the limited competitive bidding, and tender award to the contractors and suppliers, it added.
The PNR project will link Metro Manila to Legazpi City in Albay province; Legazpi to Matnog town in Sorsogon province; and Calamba City in Laguna province to Batangas City in Batangas province.
BY Tyrone C. Piad WITH REPORTS FROM REINA c. TOLENTINO AND MAYVELIN U. CARABALLO
