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Directory Of Year 2020, Issue 405
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EMBRACING BETTER BILATERAL TIES

Year:2020 Issue:0405

Column: Top Talk

Author: By Yuan Yanan, Wang Fengjuan

Release Date:2020-04-10

Page: 12,13

Full Text:  

This year marks the 45th anniversary of the establishment of China-Philippines diplomatic ties. China Report ASEAN conducted an exclusive interview with Jose Santiago L. Sta. Romana, Ambassador of the Philippines to China.

China Report ASEAN: What is your opinion on the development of bilateral relations over the past 45 years?

Romana: Philippines-China relations have steadily improved and strengthened since the establishment of diplomatic relations in 1975, anchored mainly on our strong people-to-people ties. In fact, the Philippines and China have shared a much longer history of friendship that dates back at least a millennium. The long-standing friendship and relationship are based on our two peoples’ shared aspiration for peace, stability and prosperity. We have pursued cooperation through mutual respect as equal sovereign states. In 2018, we elevated our relationship to a comprehensive strategic partnership.

In recent years, substantial progress in Philippines-China bilateral relations has translated into enhanced relations across various fields, particularly in trade and investment cooperation, infrastructure development, cultural and people-to-people exchange, as well as cooperation on law enforcement, anti-terrorism, health issues and pandemics, and international affairs. The Philippines looks forward to further improving our relations with China as we endeavor to pursue people-centered cooperation for our mutual development.

China Report ASEAN: Infrastructure construction is key to creating synergy between the Belt and Road Initiative (BRI) and the Philippines’ “Build, Build, Build” program. What mutually beneficial results have China and the Philippines achieved in this regard?

Romana: Infrastructure development is an area where significant synergy in Philippines-China economic cooperation has been achieved through the Philippines’ “Build, Build, Build” program and BRI. The “Build, Build, Build” program, a centerpiece of President Rodrigo Roa Duterte’s development agenda, aims to infuse a total of US$162 billion worth of investments in the 2017-2022 timeframe to enhance the country’s infrastructure capability.

Under the Duterte administration’s flagship program are various projects including the construction of highways, railways, dams, flood control systems, bridges, and other key projects. China has extended financial support through Official Development Assistance (ODA) and grant financing for a number of projects under the program.

At present, major projects are already in the implementation phase. Notable examples of these are the Kaliwa Dam project and a railway project of state-owned Philippine National Railways. Several railway, bridge and flood control projects are about to enter the construction phase, following completion of preparatory requirements. These projects have likewise obtained ODA loan financing from China.

Lastly, the relevant Philippine agencies are in advanced stages of negotiations with their Chinese counterparts to see through the implementation of a number of projects in the pipeline that are earmarked for ODA or grants from China.

China Report ASEAN: In recent years, trade between China and the Philippines has maintained rapid growth. What are driving this strong growth? Where is the greatest potential for bilateral economic cooperation?

Romana: The trajectory of Philippines-China economic cooperation has indeed been highly remarkable. China is now the Philippines’ largest trading partner and top import supplier. In 2018, China was the top source of approved investments, with investments of nearly US$1 billion, up 2,072% from US$45.4 million in 2017. The top sectors benefitting from these investments were manufacturing, real estate, electricity, gas and steam, and accommodation and food service activities. In terms of Net Foreign Direct Investments (FDI), 2018 figures reached US$198.7 million, with year-on-year growth of 590.1%. China’s expanding investments in the Philippines fit well with the Philippines’ goal of drawing foreign investments in pursuit of sustained economic growth. With additional measures and incentives to improve the investment climate and the ease of doing business in the Philippines, our country hopes to draw in significant Chinese investments in renewable energy, manufacturing of vehicles and other commodities, food processing, tourism infrastructure, and e-commerce, among others.

Another primary sector that would benefit from increased foreign investments is the construction industry. This is because in the Philippine setting the construction industry is regarded as the “mother of all industries” with the second largest multiplier effect on the economy and directly benefits millions of Filipinos. The Philippine government has embarked on the Philippine Construction Industry Roadmap 2020-2030. This aims to optimize the economic benefits the country is able to derive from increased levels of investments in infrastructure and build up the industry’s technical capabilities. In August 2019, a delegation composed of key government officials and industry leaders visited China to showcase the roadmap. The so-called Philippines Construction Mission to China also intended to establish strategic partnerships and pursue collaborations with Chinese firms in the implementation of the Construction Roadmap.

China Report ASEAN: How would you feel about the development of people-to-people exchange between China and the Philippines? What role should the media play in promoting people-to-people exchange?

Romana: People-to-people exchange between the Philippines and China has grown remarkably in recent years.

In 2019, the Philippines welcomed over 1.7 million Chinese tourists to our country. The volume of visitor arrivals from China grew more than nine-fold in the last few years from 187,446 in 2010 to 1.74 million in 2019. China was the second biggest source of visitors to the Philippines in 2019, posting a substantial growth of 38.58% over the previous year.

I believe that connectivity between peoples fosters mutual trust, mutual understanding and appreciation of each other’s culture. Media plays an important role in this connectivity among people, particularly in promoting the positive aspects of our relations, as well as our cooperation in tourism, educational, and cultural exchanges.

China Report ASEAN: As COVID-19 spreads around the globe, countries including China and the Philippines are shouldering the mission of fighting the virus. What impact could the pandemic have on bilateral relations?

Romana: The spread of the virus and its effect globally makes it clear that no state can stay immune to the COVID-19 disease, and it heightens the importance of cooperation in dealing with the pandemic. China’s continued openness and transparency about this disease would no doubt help global efforts in eradicating it. As China sees gains in its efforts at the domestic level, China vowed to enhance cooperation internationally and we are now seeing her provide much needed assistance to those that are most affected.

In terms of Philippines-China cooperation on COVID-19, this has been characterized by mutual assistance and cooperation. Exchanges of donations, support and assistance between our countries are the true affirmations of the abiding friendship and legacy of mutual aid that has been the hallmark of Philippine-Chinese ties over the years. As we continue to deal with this pandemic, our bilateral relations will be strengthened as we step up cooperation between our nations through sharing of information and best practices in a prompt manner, capacity building for decisive response, strengthening existing measures, and optimizing mechanisms and initiatives in addressing the COVID-19 epidemic in a mutually effective manner.

(Special thanks to ASEAN-China Center for their great support of this interview.)

Philippine Ambassador to China Jose Santiago L. Sta. Romana.

Philippine Ambassador to China Jose Santiago L. Sta. Romana.

In 2018, China was the largest source of approved investments, with investments of nearly US$1 billion, up 2,072% from US$45.4 million in 2017.

n terms of Net Foreign Direct Investments (FDI), 2018 figures reached US$198.7 million, with year-on-year growth of 590.1%.

The volume of visitor arrivals from China grew more than nine-fold in the last few years from 187,446 in 2010 to 1.74 million in 2019. China was the second biggest source of visitors to the Philippines in 2019, posting a substantial growth of 38.58% over the previous year.

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