MANILA – It's still business as usual for the Philippines and China despite the ongoing territorial dispute, but Manila must sustain its high growth trajectory to draw more investments from the world’s second biggest economy.
"Despite all these noises, it seems that business has risen at least by economic standards," Economic Planning Secretary Arsenio M. Balisacan said in a forum organized by The Manila Times.
Citing data from the Philippine Statistics Authority, Balisacan said approved investments from China surged to P9.62 billion in the first half of the year, recovering from the 37.6 percent decline to P1.24 billion for the entire 2013 from P1.99 billion in 2012.
However, the Philippines attracts merely 2 percent of China's total investment in Southeast Asia, beating only Brunei, said Wang Yang, First Secretary and Head of Commercial Affairs of the Chinese Embassy in the Philippines.
"As long as we grow at that high rate eventually we would catch up with our neighbors. Your history of high growth is still very short. It's hard to sell the country to investors who are searching for quick returns and guarantees they can recover what they invest," Balisacan said.
Philippine gross domestic product (GDP) grew by 6 percent in the first half, slower than the 7.8 percent in the same six months of last year, but still one of the fastest in Asia.
More Chinese companies are expected to invest in the country, Yang said, while stressing the need for more business-to-business interaction between the two nations.
Balisacan said Chinese companies may see opportunities for investments in manufacturing, agribusiness, tourism, IT-BPO, logistics, construction and infrastructure – important sectors under the Philippine Development Plan.
"Things have changed and the challenges for us to keep the momentum for reform, growth. We need to build our reputation as a country that can sustain its growth," said Balisacan.
He said the Philippine government must commit to regional peace and stability, enhancing mutual trust and bolstering economic cooperation in development policy.
Businesses, on the other hand, must foster multidimensional Philippines-China relations through joint research projects, trade missions and cultural exchanges, among others, he added.
"The earlier na magka-closure ang disputes natin, the better,” Balisacan said.
"Bullying will damage China's image as a good neighbor focusing on developing its own economy. The chilling relationship with Asean will make China in the eyes of the western world a hostile nation that can't be trusted to follow international norms of behavior so this must be contained," said former Foreign Affairs Secretary Roberto R. Romulo. © Provided by Krista Angela M. Montealegre, InterAksyon.com
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