The Market Monitor Minding the Nation's Business
By Jim Gomez / The Associated Press
The Chinese ambassador in Manila has said trade between China and the Philippines grew last year despite their protracted territorial conflicts, providing hope their relations could flourish even as tensions remain.
Ambassador Zhao Jianhua also played down reports that Chinese President Xi Jinping may skip the annual Apec summit to be hosted by Manila in November because of the conflicts. He said no decision has been reached because the Philippines government only sent its invitation recently.
“Despite the difficulties we have, I think last year bilateral trade grew 17.6 percent and our trade stands at over $44 billion,” Zhao told reporters after speaking in a Manila business forum, where he highlighted how trade and investment between the Asian neighbors could still expand considerably.
“From these figures, you can see that our bilateral relationship is quite strong … so that gives us hope for a better relationship,” Zhao said. While China is a large Philippines trading partner, the trade volume has lagged far behind Beijing’s trade and investment in other Southeast Asian countries like Singapore, Malaysia and Indonesia.
The Philippines has expressed interest in joining the Asian Infrastructure Investment Bank but hasn’t yet signed up. “The door of AIIB is going to continue to be open to the Philippines,” Zhao said. The Chinese-led bank intends to finance investments in railways, cargo ports and other trade links.
Zhao reiterated China’s offer for both countries to settle their differences through one-on-one negotiation and not through international arbitration, which Beijing has rejected.
“Come back to bilateral talks,” he said when asked what can mend the relations between Manila and Beijing, adding only such negotiations would be acceptable to China.
“The negotiation might require patience, might take time, but that’s the only way out,” he said.
A Philippines complaint challenging the validity of China’s vast territorial claims in the South China Sea is pending before an international tribunal in The Hague. Although China has declared that it would not join the proceedings, the tribunal recently held hearings to address Beijing’s position that the five-man arbitration body has no authority to hear the case.
The long-simmering disputes among China, the Philippines and four other governments flared again last year when Beijing launched massive island- building in seven disputed reefs in the South China Sea’s Spratly Islands.
The United States and its allies, including the Philippines, have asked China to halt the massive offshore constructions, fearing the artificial islands could be used by Beijing to restrain freedom of navigation and threaten rival claimants.
China has dismissed those fears, saying it has owned the territories since ancient times and has a right to build there.
“No single commercial ship has been affected negatively when they go through the South China Sea,” Zhao said, adding that “the stability and peace in the South China Sea has been maintained despite the differences we have.”