China wants more investments in Phl

MANILA, Philippines - The Chinese government wants to encourage investments and attract more tourists to come to the Philippines, even as both countries are involved in a territorial dispute.

“I should point out that China’s investments to the Philippines have not been satisfactory so we hope that we can invest more,” Chinese Ambassador Zhao Jianhua said at a welcome dinner hosted by the Philippine Chamber of Commerce and Industry (PCCI) on Tuesday.

Investment opportunities are seen in the areas of infrastructure, energy and manufacturing.

Given extensive experience of Chinese companies in the area of infrastructure, Zhao said there is interest in projects in the Philippines.

Zhao said he wants to encourage investments in energy projects as well, to help bring down the country’s power costs, considered to be the highest in the Southeast Asian region.

Manufacturing is another potential area for investments here, as many Chinese firms engaged in labor intensive industries are looking to transfer to other countries in Asia and Africa in a bid to address energy supply shortage and environmental issues.

“There is good opportunity for Philippine side to receive some of good quality manufacturing investments, say food processing, manufacturing of minerals. These are the things we can do in the near future,” Zhao said.

“You’ll be surprised that the Philippines is investing more in China than what China is investing in the Philippines,” he said.

He said China would also like to see more Chinese tourists visiting the Philippines.

In 2013, 426,000 Chinese tourists came to the Philippines, a 70-percent increase from 2012.

Despite the jump in the number of Chinese travelers to the Philippines, Zhao said the figure is still small compared to Malaysia and Thailand’s respective tally of four million and three million.

“Imagine if you can attract one million tourists. That will boost the tourism industry in the Philippines. We are glad that despite the difficulties we are having, Chinese tourists are still attracted by the beautiful sceneries or people here... we hope this will grow this year,” he added.

As of end-April, data from the Department of Tourism showed China was the third largest source of tourists in the country, accounting for a 9.91 percent share or 168,155.

Philippine business groups said it is in their interest to continue to strengthen trade ties between the two countries.

“We see China as a huge market to tap and explore. The Philippines, being a party to the ASEAN, must take advantage of the benefits offered under the ASEAN-China Free Trade Agreement,” Philippine Food Processors and Exporters Organization, Inc. president Roberto Amores said at the same event.

Data from the Philippine Statistics Authority showed China was the top source of Philippine imports, accounting for a 13.01 percent share, amounting to $8.027 billion last year, higher than the $6.680 billion in 2012.

For the same year, China was the third biggest destination of Philippine exports with a 12.19 percent share valued at $6.583 billion, also up from $6.169 billion in 2012.

In the same gathering, PCCI president Alfredo Yao said they are also doing their part to further improve the two countries’ trade and economic relations.

“Through our Memorandum of Agreements with various Chinese Chambers and Councils like Guangdong, Hunan, Jiangsu, Shanghai, Xiamen, Guangxi, Chongqing, among others... we will take all the opportunities to promote, strengthen and expand trade, economic, scientific, technological cooperation and other business relations between our two countries,” Yao said.

Despite the territorial conflict, Zhao said the two countries should continue to work together to enhance economic ties.

“I think it is imperative and essential that the two countries focus on things that can unite us, focus on things that can promote common prosperity for both countries and can contribute to improvement of the livelihood of our people,” he said.

Tensions between the Philippines and China have risen amid overlapping claims in the South China Sea.