With a trade surplus last year in favor of the Philippines to the tune of US$1.2 billion, Chinese Foreign Minister Li Zhaoxing told Foreign Affairs Secretary Blas F. Ople yesterday that, in spite of a clear trend that bilateral trade will favor the Philippines, China is determined to exert every effort to strengthen the trade relations between the two countries.

“Bilateral trade and commercial exchanges between the Philippines and China continue to expand. There is a surge of interest in both sides to take advantage of trade complementation resources now that China has embraced free market reforms.  This is to the interest of both countries,” the Secretary said after his meeting with Minister Li.  He added that  RP-China trade is growing at a much faster rate than China's trade with either ASEAN as a whole or with the world.

The Secretary also said that Minister Li promised to increase investments in the Philippines. The number of Philippine investments in China is higher. Most of these investments are by Filipinos of Chinese descent who have relatives in China.  Minister Li said that they would be particularly interested in investing in the BIMP-EAGA growth area, a part of which covers Mindanao.

“With the growth area’s rich natural resources and combined population of around 50 million people, the Philippines hopes China would help the BIMP-EAGA become a progressive and integrated economic sub-region,” the Secretary said.

During their meeting, Secretary Ople and Minister Li discussed a wide range of bilateral, regional and global issues.  On the issue of cooperation in the war against drugs, both agreed to step up cooperation.

“We both acknowledge the problem of drugs and reiterated our determination to win this fight.  We have established the legal and administrative framework to wage this battle, we must now ensure their full implementation,” the Secretary said.

Upon instructions of the President, Secretary Jose D. Lina, Jr. visited Beijing on 6 – 8 August 2003 to discuss the implementation of the Memorandum of Understanding on Cooperation Against Illicit Traffic and Abuse of Narcotic Drugs, Psychotropic Substances and Percursor Chemicals that was signed during President Arroyo’s visit to Beijing in October 2001.

During the visit of Secretary Lina, both sides adopted the Terms of Reference for the joint conduct of investigations and controlled delivery operations, the communication flow chart between DILG and China’s Ministry of Public Security and a Program of Action. They also agreed on the visit by a Chinese team of experts to the Philippines in the last quarter of the year as a first activity in the Program of Action.

“The previous lack of operational measures has hampered efforts by both sides to exchange information on suspected drug criminals and activities and undertake joint actions against cases of smuggling.  We have overcome these obstacles and are now ready to fully face the challenge of eliminating the drug menace together,” the Secretary said.

Secretary Ople and Minister Li also had a lengthy discussion on the issue of nuclear weapons on the Korean peninsula and the central role that China has been playing to help ensure the continued stability of Northeast Asia.

“We spoke at length and in great detail of our respective policies and perspective on the issue of the Korean peninsula. I told Minister Li that the global community owns China a debt of gratitude for its role in bringing about the six-party talks in Beijing later this month to address the issue.  China has  played an important role on this issue and I hope that all the other parties  will come to these talks with the same level and commitment of China to see a peaceful solution to this issue,” the Secretary said.

Among other regional issues, Secretary Ople and Minister Li also discussed the South China Sea, with their discussions focusing on ways to build further confidence among the claimants and to avoid conflict.

During their meeting, Minister Li took the opportunity to convey to Secretary Ople the deepest sympathies of the people of China for the Filipino victims of the recent bombing of the UN headquarters in Baghdad.

Both Ministers ended their over two-hour meeting by reiterating their common commitment to further strengthen relations between their countries. END.