Aquino's China visit to boost bilateral ties

(China Daily)

09:04, August 31, 2011

MANILA, the Philippines - Philippine President Benigno Aquino was scheduled to arrive in Beijing late on Tuesday to begin a five-day visit to China, which is expected to raise bilateral relations to a higher level. 

Aquino, on his first state visit to China since taking office in June 2010, is accompanied by a 300-strong delegation, mainly composed of representatives from leading Philippine companies. 

Analysts said the visit will raise Sino-Philippine relations to a "higher level", but some disagreements, including the territorial dispute in the South China Sea, remain unresolved. 

"China's economy is developing at full speed, and we are facing a good opportunity," said Rheybie Nipas, head of China operations for leading Philippine retailer SM Mall, which plans to open its fifth shopping center in Suzhou, East China, in September. 

Three business forums will be held during Aquino's visit in Beijing, Shanghai and Xiamen, where a number of cooperation deals are expected to be signed. 

The two sides will sign a five-year plan for bilateral economic and trade development, "which will map out the key areas and ways for bilateral cooperation in the next five years", said Wu Zhengping, economic and commercial counselor at the Chinese embassy in Manila. 

Chinese businessmen will also reaffirm $1.5 billion in investment in the Philippines, said the Manila Bulletin, a major Philippine newspaper. 

"I really believe that there are comparative advantages (for) both economies," Aquino said in an interview last Friday with Chinese media at the Malacanang Palace in Manila. 

There is great potential for bilateral cooperation in many areas including mining, infrastructure, agriculture and tourism, but the biggest problem is that the scale of investment remains relatively small, Wu told China Daily. 

He said the 40 percent limit on foreign companies' stock holdings in the Philippines has been a barrier to attracting more investment in the country. 

Statistics from the Philippine authorities show that foreign direct investment from China in the country last year ranked ninth at $5.6 billion, with Japan taking the top spot. 

Both countries have large populations and big markets, are rich in natural resources, and their geographical proximity reduces trading costs, said Wu. 

It takes less than three hours to fly from Manila to the Chinese cities of Xiamen and Guangzhou. 

The two countries complement each other in many areas, such as infrastructure, in which China has rich experience and the Philippines has a great need, Wu said. 

Philippine Transportation Secretary Mar Roxas said earlier that Aquino's agenda will include the renegotiation of the delayed Northrail project, undertaken by North Luzon Railways Corp and Chinese contractor China National Machinery and Equipment Corp. 

Saying it is "a very good project" that the Philippines needs, Liu Jianchao, China's ambassador to the country, told a news briefing that the Chinese government is taking a "positive and open approach" to address issues affecting the project, mainly cost overruns. 

The 80-kilometer railroad will link the northern part of Metro Manila with the Diosdado Macapagal International Airport in Clark, Pampanga Province. 

During his stay in China, Aquino will visit his ancestors' hometown, Hongjian, Fujian province, where his mother, late Philippine president Corazon Aquino, made a trip to trace her ancestral roots 23 years ago. 

"One would definitely benefit from renewing the ties and 'retracing' the roots," Aquino said. 

However, bilateral relations have experienced tests since 2010 due to the botched rescue of Hong Kong hostages in Manila in 2010 and a flare-up in disputes in the South China Sea. 

Aquino's visit is "good and timely" as it will bring bilateral relations to a "higher level", though some disagreements, including the territorial disputes, remain unsolved, said Professor Ben Lim from the Ricardo Leong Center for Chinese Studies at Ateneo de Manila University. 

"The Philippines really needs China, as its economy has been facing a downturn for a long time," Lim told China Daily. 

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