Philippine and Chinese firms on Monday signed $1.1 billion worth of business deals in another show of strong bilateral relations between two economies clashing over maritime territory.
Local firms secured multimillion-dollar trading contracts with Chongqing-based companies at the Philippines-China (Chongqing) Trade and Investment Forum in Pasay City. A total of nine deals amounting to over $1.1 billion were closed at the event.
Chongqing Hongjiu Fruit Co. Ltd. entered into a $1-billion contract with Davao-based Eng Seng Food Products, while Qhongqing Lifan Industry (Group) Import and Export Co. Ltd. signed a $30.01-million deal with Mitsukoshi Motors Phils. Inc.
Also, Kingling Motors Philippines Inc. finalized a $30-million agreement with parent Qingling Motors Co. Ltd., while Yingang Motorcycle Philippines Ltd. Inc. and Chongqing Loncin Import and Export Co. Ltd. inked a $21.13-million deal. QSJ Motors Phils. Inc. also secured a $21.75-million contract with PT. Sokonindo Automobile.
Strategic cooperation agreements were signed at the forum between the China Council for the Promotion of International Trade Chongqing Subcouncil and the Federation of Filipino Chinese Chambers of Commerce and Industry Inc.; and Develop Century International Logistics Co. Ltd. and Sincerity International Service Corp.
Moreover, Hyundai Motor Group, Beijing Hyundai Motor Co. Ltd. and Hyundai Asia Resources Inc. entered into a memorandum of understanding. Chongqing Panhua Steel Plate Co. Ltd., the Philippine Economic Zone Authority and San Miguel Corp. also signed an MOU.
In his keynote speech, Finance Secretary Carlos G. Dominguez III said “a more forward-looking policy toward China” is being implemented by the government, one that looks at the benefits that can be generated from warmer ties between the two economies.
“We look forward to more partnerships at the ground level, at the level of individual enterprises and shared wealth creation. The opportunities that unite us are far greater than the issues where we might have some differences,” Dominguez said.
For over three years under President Duterte’s leadership, the government has set aside the arbitral ruling negating Beijing’s “excessive” claims in the South China Sea even as China stepped up militarization, reclamation and exploration activities in the area.
Duterte only invoked the arbitral ruling in his bilateral meeting with Chinese President Xi Jinping in August. However, Xi refused to recognize the legal victory of the Philippines.
Last year merchandise trade between the Philippines and China rose by nearly 21 percent to $30.83 billion, from $25.48 billion in 2017, based on data from the Philippine Statistics Authority.
Investments from China also jumped to P50.69 billion last year, from P2.33 billion in 2017. This accounted for more than one-fourth of the P178.96-billion approved investments from foreign sources during the year.
Image credits: Grafikwebvideo | Dreamstime.com