Officials tell PHL, China businesses forget territorial row, focus on econmic ties

Filipino and Chinese businessmen should engage in more people-to-people relations and preferably set aside a territorial dispute over West Philippine Sea (South China Sea) to further deepen economic ties between the two nations, speakers in a forum Wednesday said.

 

Instead, business people should also take advantage of the greater economic expansion China and the Philippine are expected to further achieve.

 

The territorial dispute between Manila and Beijing has not only disturbed the stability of both nations but has impacted on region as well, former President Fidel Ramos said during the Philippines-China Business Forum organized by The Manila Times in Makati City.

 

"Without stability, businesses cannot run... nations cannot progress. So our two countries should return to business as usual... which can be conducted at unusual times," he said.

 

The South China Sea is home to a cluster of islands, shoals, reefs and cays and is claimed in part or in whole by China, the Philippines, Vietnam, Malaysia, Brunei and Taiwan.

 

In the same event, Economic Planning Secretary Arsenio Balisacan said there are a number of business prospects for both Filipino and Chinese investors to strengthen economic ties.

 

"I believe there is a mutual desire for stronger economic ties as well as for peace and stability," he said.

 

"To complement our efforts in stronger economic ties, it is imperative to have people-to-people business relations and joint endeavors in education, applied science and technology and cultural exchanges," said Balisacan, who is also the National Economic and Development Authority Director-General.

 

For one, World Bank forecasts China’s economy to grow by 7.4 percent in 2014 and just above 7 percent on average in 2015 and 2016.

 

The Washington-based multilateral lender expects the Philippine economy to expand by 6.4 percent this year and 6.7 percent next year.

 

Both forecasts are faster than the estimated 2.8 percent growth of the global economy this year.

 

This goes to show that the distribution of power in the global arena is changing, Ramos said.

 

"The center of gravity is moving away from the Atlantic and is now tilting towards where we are, the Asia Pacific," he said.

PHL, China continue to grow

 

Even with the current territorial row between the two nations, trade relations between the Philippines and China continue to grow, Balisacan noted.

 

Philippine government data showed bilateral trade rose by 19 percent to $10 billion in first seven months of 2014.

 

China is also the Philippines' second largest trading partner and the top source of imported goods.

 

"Despite all these noises, it seems to be business as usual... Things are not slowing down in so far as economic relation is concerned," Balisacan said.

 

Wang Yang, head of commercial affairs and first secretary of the Chinese Embassy in Manila, said the Philippines is one of the top trade partners of Hong Kong and mainland China.

 

China data showed the two-way trade stood at $38 billion in the first eight months of 2014, a 4.7 percent jump year-on-year.

 

Data further showed the Philippines is China's fourth biggest source of foreign direct investment (FDI) from Southeast Asia.

 

Yang said an example of this FDI is the investments of SM Group of Henry Sy and fastfood giant Jollibee Foods Corp. 

 

"China and the Philippines are not only neighbors. Since the establishment of diplomatic relationship between our two nations, we've had progressed in our bilateral friendship and economic development," he said.

 

"I believe our two countries could overcome difficulties and seize opportunities through trade," he added.

 

All these show that economic opportunities and growth potentials are promising for our country and for China, Balisacan said. "I encourage you to keep the ties of our countries as we are now on higher growth trajectory," he noted. – VS, GMA News