Cultural, economic ties between the two nations are stronger than their political differences
NANNING,
China—Although complicated, the fueling tensions over the disputed
maritime territories between China and the Philippines are seen to be
just a temporary obstacle to the economic growth and cooperation of both
countries, a Chinese professor said.
Prof. Hu Jianghua from
Guangxi University of Finance and Economics in Nanning, China told
Filipino reporters that the ongoing territorial row between the two
countries is just a short-term impediment to the economic partnership
that the two countries are trying to forge.
“Both the Chinese
businessmen and Filipino businessmen, they are focused. Their attention
is to put on the presence of common interest and business profit,” Hu
said through a translator. “So I think that the political problem should
not be the obstacle to our fundamental economic interest.”
Hu
explained that “business is business”—despite the feud over the disputed
waters, the Philippines and China will continue to have sound economic
and trade relations, which is more important for both countries.
Based
on the data by the Department of Trade and Industry, China is the
Philippines’ second largest source of imports and third largest export
destination. Philippine exports to China, meanwhile, increased by 11
percent in 2010 from 2000, according to research director Dr. Dan
Steinbock.
In a report by Philexport, Chinese projects in the Philippines grew by 63.2 percent or $1.02 billion in 2012.
The
professor made the remarks in one of the lectures at the two-week
Economic and Trade seminar for Association of Southeast Asian Nations
(Asean) Journalists held last June 18 to 30 in Nanning. The assembly was
organized by the China-Asean Expo secretariat and sponsored by China’s
Ministry of Commerce.
Stronger cooperation
With the rapid economic growth that China and Southeast Asia
demonstrated in the past few years, Hu explained that it is imperative
for the region to build stronger bilateral economic and trade
cooperation for a more permanent and lasting progress.
“The
political issues are the effect to some extent of the bilateral economic
cooperation but the focus of attention of the businessmen of China and
the Philippines are focused on the pursuit of the common interest,” he
said.
“Also, there are expectations for the government of both
sides to solve the critical issues and problems and create more
favorable business environment for them.”
So far, the maritime
territorial dispute has no direct effect yet on the economic relations
between the two countries, except when China imposed restriction on the
importation of Philippine bananas last year after the Scarborough Shoal
standoff erupted. China then claimed that the banana shipments were
infested with bugs.
The restriction has eased, though, as Chinese
quarantine officials informed the Philippines that the quality of
bananas has improved. To date, China remains as the third biggest
importer of Cavendish bananas, next to Japan and South Korea.
Good shape
The economic exchanges between China and the Philippines is in
relatively good shape. Ministry of Commerce Department of Asian Affairs
Director Li An said in one of the lectures during the same seminar that
the bilateral trade between the two countries are increasing.
“The
political relationship between the countries is not very good,” he
said. “But from the point of view of trade and economic cooperation, I
believe in recent years, the bilateral cooperation has been fairly
increasing. The figures concerning the bilateral trade have been great.”
In
fact, the Philippines is one of China’s major foreign direct
investments (FDI) source among the Asean countries next to Singapore,
Malaysia, and Thailand. The Philippines’ FDI in China was recorded at
$130 million in 2012.
However, Li said that the Philippine
government should exert more efforts to attract more Chinese investors
to the country. According to the DTI, Chinese investments in the country
last year only reached $65.45 million, which is about half of the
Philippines’ FDI in China.
According to Li, there have been no
considerable investments made by Chinese investors in the Philippines
compared to other Asean countries since 2005. Most of China’s FDI is
concentrated in Singapore, Brunei, Myanmar, Cambodia, and Laos.
Just recently, DTI Secretary Gregory L. Domingo urged Chinese businessmen to invest in the Philippines.
“Since
China has more money than the Philippines, we hope that Chinese will
invest more in the Philippines,” he said during a Philippine-China
business forum in April.
Challenge
Besides
China and the Philippines, there are four other countries claiming parts
of the West Philippine Sea (referred to as the South China Sea by
China). These are Vietnam, Malaysia, Brunei, and Taiwan.
The
maritime territory is a home for the world’s biggest coral reefs and
hundreds of species of fish and marine animals. It is also believed to
contain unexploited reserves of oil and natural gas.
Hu noted that
both governments should appropriately handle territorial disputes by
strengthening dialogues and maintaining consultations on political
issues as this is vital to promote peace and stability in the region.
Other
entities like non-government organizations can also play a role in
building relationships between Chinese and Filipino investors.
The
suggestion is easier said than done, though, as the conflict has become
tougher and tougher. Since tensions broke out last year, China has
strengthened security around the area it claims while the Philippines
recently launched military exercises around the area together with U.S.
forces.
Add to that the “testy exchanges” that Philippine Foreign
Affairs Sec. Albert del Rosario and his counterpart, Foreign Minister
Wang Yi, engaged in last week during the Asean Foreign Ministers’
Meeting held in Brunei.
Now, it is a tough challenge for both
parties—who are bound by their long historical and cultural relations—to
ease the tension for a more strategic and long-lasting cooperation.
source: Manila Times
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