First Reaction Paper

Philippines seeks large investments from China

Cesar Purisima, the finance secretary of Philippines, said that his country is seeking Chinese investments in finance, transport, facilities and other public projects since the country would like to change its economic growth from consumption into investment on April 12 in Beijing, China's capital.

His remarks came during a meeting of a Philippine delegation with representatives from the Chinese business sector, and he introduced investment opportunities in the country to Chinese enterprises.

It is the first senior delegation from the Philippines since the hostage crisis happened last August. However, the hostage crisis is not the key topic of the Philippine delegation's trip but rather attracting investment.

According to the delegation, Philippine GDP growth in last year reached 7.3 percent and was the highest recorded in recent years. The two-way trade volume between China and the Philippines hit 27.75 billion U.S. dollars last year. 

Purisima encouraged Chinese businesses to invest in renewable energy and infrastructure building in the Philippines when meeting with Chinese businessmen.

Philippine Trade and Industry Secretary Gregory Domingo, member of the delegation, echoed this sentiment, saying qualified Chinese investors can enjoy policies such as tax exemptions.

Public works and highways minister Rogelio Singson, also one member of the government delegation visiting China, said Manila was drumming up investment for 25 projects, with 10 to be offered to foreign investors this year.

The government will seek funding for another 48 projects in the coming years.

"We are really falling behind in infrastructure investment," Singson said.

When answering the question of how much money does Philippines want to attract from China, the delegation responded "not sure but tremendous."

Purisima also said: "We are bullish. We are open for business."

By Wang Hanlu, People's Daily Online

http://english.peopledaily.com.cn/90001/98649/7349713.html

Reaction:

  As we all know, trading and negotiating businesses with other countries is very essential for the economic growth of one’s country. Philippines, a country aiming for this economic growth, seeks large investments from China to change its economic growth from consumption into investment. Even if there are some issues distracting their relationship as neighboring countries like the hostage crisis causing the death of some Chinese people in the Philippines and the death penalty of the Filipino OFWs because of drug trafficking in China, it seems that they still maintain their business relations for the improvement of their economic status.

    On my own opinion, this action done by the Philippines is a good professional way that it sets aside some personal matters just to do what it believes that can improve the country’s economy. As we can see, Chinese products are very popular in Filipino markets. We already knew that China has a good stable economy and strong business relations from other countries and because of this, I think, Philippines decided to attract good investment opportunities to China. Imagine, Philippine Trade and Industry Secretary Gregory Domingo said that qualified Chinese investors can enjoy polices such as tax exemptions just to make sure that they would agree to give their investments. 

     Knowing this, I describe Philippines as a dependent country. It is a dependent country as such that its economic and political matters are linked to some countries especially those progressive countries like United States and China. It is not a bad idea, though, because asking some aid can bring large benefits. As what the saying goes, “No man is an island. “

    Therefore, I believe that what Cesar Purisima, the Finance Secretary of the Philippines did is a right thing for our economy. I like his statement which says “We are bullish. We are open for business.”  He is just favoring economic prospects. I think, this agreement can benefit both parties. I hope that China would agree to give their large investments and that through this, Philippines can gain economic improvements for the welfare of the Filipino people.