Trade can improve Sino-Philippines ties
- By Tom McGregor
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CRI, September 6, 2011
"I apologize for taking too long, about a year, before I managed to get here," Aquino said. "But it is a worthwhile trip so far and I think it is a good opportunity to broaden and deepen the ties that have existed between our people for centuries."
Aquino's state visit does appear "worthwhile."
"The documents signed included an assistance grant from China and sending investment experts to the Philippines. Deals concerning cooperation in culture, sports, tourism and media were also signed," according to the China Daily.
The two nations expressed a desire to pump up bilateral trade to $60 billion (U.S. dollars) in 2016, as announced by Chinese Vice Premier Wang Qishan when he gave a speech at the China-Philippines Economic and Trade Forum on Wednesday morning.
President Aquino is leading a delegation of nearly 300 business leaders to China this time, and his schedule included attending two more business forums held in Shanghai and Xiamen.
In 2010, bilateral trade hit $27.7 billion (U.S. dollars), an increase of 35 percent year-on-year, according to figures from China's Ministry of Commerce. China is the third-largest partner of the Philippines after the untied States and Japan. The seventh-largest foreign investor for the Philippines is China.
Meanwhile, Vice Premier Wang is encouraging Chinese companies to expand investments and get involved with more construction projects in the Philippines. Thinking in a purely business framework, this seems to be a good idea. Inflation and labor costs have been surging throughout much of Asia. These conditions developed due to the fast pace of economic growth in the Asia-Pacific region.
However, the Filipino economy has remained stagnant in comparison with the rest of the region. Therefore, inflation and labor costs have not soared as high. President Aquino is revamping the Philippines business climate to induce more foreign investment. At the forum, he said, "more investment means more jobs." He added that the nation is open for business and the government is determined to soften the path for investors.
As reported by the China Daily, "in 2010, the Philippines' gross domestic product grew 7.3 percent year-on-year, the highest in the past 35 years, said Xu Ningning, deputy secretary-general of the China-ASEAN Business Council. The rapid growth is attractive for Chinese investors, and bilateral trade and investment will continue to benefit from the Free Trade Area between ASEAN and China, said Xu."
Some foreign policy experts are taking note of how Sino-Philippines ties could improve through better trade deals. Yang Baoyun, deputy director of Peking University's Center for Southeastern Asian Studies, told the China Daily that Beijing's offer to boost bilateral trade helps to pave the way for solving territorial disputes. "It is a pragmatic way to create conditions to solve disputes."
Taking a pragmatic approach to improve diplomatic ties between countries stands as an effective means to reduce tensions. Pragmatism through business deals can even establish a more harmonious atmosphere. Hopefully, China and the Philippines can utilize economic cooperation so both nations can walk together on the path to prosperity.
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