Metro Manila (CNN Philippines) — The Philippines managed to secure $24 billion (about ₱1.2 trillion) worth of investments and soft loans from China, following President Rodrigo Duterte’s state visit there. And it appears China is serious about keeping its promises.
A high-level trade official from China explained on Monday that better cooperation between both countries can increase the competitiveness in the region.
“[B]y intensifying the cooperation between China and the Philippines, I think it will enhance the overall competitiveness of this region and it will enhance the attractiveness of the region as an investment destination to the outside world. The policy of China is to prosper with our neighbors,” explained Wu Zhengping, the Director General for Asian affairs of the China Ministry of Commerce.
Both governments plan to revive the Joint Commission on Trade and Economic Cooperation by next year. They will convene early in 2017 to flesh out a 6-year plan on how to implement the $24 billion in investment and soft loan packages. A large-scale Chinese industrial park — similar to the ones in Cavite and Cebu — may also be set up in the country.
There are no concrete plans just yet, but Wu said the focus would be on infrastructure such as railways, airports, and expressways.
When asked if these investments and loan packages come with strings attached with regard to the South China Sea dispute, Wu declined to answer but he said these deals would be good for both countries.
“The reason why the Chinese companies would like to increase business contacts with their Philippine counterparts is for their mutual benefit. I think the reason why we would like to invest here in the Philippines is to take advantage of the dynamic economic growth in the Philippines and also to use the Philippines as a gateway to the neighboring countries, to ASEAN or even in East Asia,” he said.
