Philippines, China Boost Economic Ties

The Wall Street Journal ^ | April 27, 2005

[snowsislander]

MANILA, Philippines – The Philippines and China boosted economic cooperation Wednesday with agreements valued at more than $1.5 billion on the second day of Chinese President Hu Jintao's visit to Manila.

The deals, signed by Chinese and Philippine officials after a 45-minute meeting between Mr. Hu and Philippine President Gloria Macapagal Arroyo, opened the door to the two largest Chinese investments in the country.

A $500 million loan will go toward a railway linking Manila and northern provinces, and a $950 million investment will go into developing a nickel-mining project in the southern Philippines.

Mr. Hu, who arrived in the Philippines on a state visit late Tuesday as part of a short regional tour, is accompanied by a business delegation from Chinese companies, many of which are offering to play a role revitalizing the Philippines' long-dormant mining sector.

Mr. Hu's visit "is very important because it reaffirms the good relations between the Philippines and China," presidential Executive Secretary Eduardo Ermita said in a radio interview.

After meeting with Ms. Arroyo, Mr. Hu is scheduled to address a joint-session of the Philippine Congress later Wednesday.

A Philippine government document summarizing the agreements said the country also will benefit from increasing tropical-fruit exports to China and from Beijing's investments in railways, electric-power, energy and construction. Presidential spokesman Ignacio Bunye said the railway project is expected to create at least 17,000 jobs.

Chinese firms have been invited to invest in 23 Philippine mining projects, and Beijing has expressed interest in the country's copper,nickel and manganese mines.

China is the fastest growing market for Philippine exports and is the Southeast-Asian country's fifth-biggest trading-partner.[...]

Traditionally, the Philippines has been a strong U.S. ally in Southeast-Asia, but Manila's ties with China have steadily warmed in recent years. Last year, China pledged $1.2million in military assistance to Manila, the first time Beijing has offered such aid.[...]

[snowsislander]

ping

[Sandreckoner]

{sigh}

Every time China makes any news with, oh, anyone we have to be treated to a line like, "Blahblah, traditionally a U.S. ally, blahblah..." as though by expanding economic ties with China is akin to a nation 20 years ago falling into the Soviet orbit as a satellite.