26 January 2005 – Senior foreign affairs officials of the Philippines and China today discussed ways to further strengthen bilateral relations and develop cooperation in economic trade, agriculture and the political and cultural areas, as the two countries for the 30th anniversary of the establishment of their diplomatic relations.

Delegates led by DFA Undersecretary for Policy Sonia C. Brady and Vice Minister Wu Dawei of the People’s Republic of China met in Manila on 26 January 2005 to discuss measures to implement agreements and consensus points reached between President Gloria Macapagal-Arroyo and President Hu Jintao during the President’s state visit to China in September 2004.

“New milestones were set during the state visit to maintain the dynamism of bilateral relations. As senior officials, part of our work is to ensure that new milestones are achieved to pave the way for the further deepening and broadening of our relations,“ Undersecretary Brady said at the opening of the 14th Philippines-China Foreign Ministry Consultations held at the Century Park Hotel, Manila.

The meeting also discussed preparations for the state visit of President Hu Jintao to the Philippines.  This will be the first visit to the country since 1996 by a Chinese head of state.

Undersecretary Brady underscored the hope that “the visit of President Hu to the Philippines this year to highlight the celebration of the 30th anniversary of our diplomatic relations will usher an equally vigorous phase of growth in all aspects of the bilateral relationship.”

Highlighting the 30th anniversary of diplomatic ties on 09 June, the meeting agreed on a yearlong program of activities between Beijing and Manila to mark this occasion and to strengthen people-to-people ties.

The meeting also agreed that pursuant to discussion between President Arroyo and President Hu Jintao in Beijing last year, the Philippines and China will:

• Convene the first Annual Security Dialogue in March in Manila;
• Implement agreements resulting from the visit of Defense Secretary Avelino J. Cruz to Beijing in November;
• Convene the meetings of the Joint Fisheries Commission and the Joint Committee on Agriculture in Manila;
• Convene the 24th Meeting Joint Trade Committee in Manila;
• Prepare to implement the agreement on mutual visa exemption of visas for diplomatic and official passport holders;
• Discuss the construction of the Malolos-Clark leg of the Northrail project to spur growth in the Clark-Subic economic corridor, which is one of the Arroyo administration’s priority development areas; and,
• Discuss China’s investments in the mining sector.

“The Philippines is confident that we will see more investments from China in the mining sector following the successful visit of Secretary of Trade and Industry Cesar Purisima and DENR Secretary Michael Defensor to Beijing last week.  Strategic mining ventures will be mutually beneficial for the two economies, ” Undersecretary Brady said.

During the state visit of President Arroyo to China, President Hu indicated China’s strong interest to partner with Philippine firms in the mining of minerals such as copper, nickel and manganese.

Chinese firms have been invited to consider an investment portfolio worth US$7 billion for 23 project offers in the mining sector, ahead of the International Mining Conference in Manila on 01 - 02 February 2005.  Agreements were signed last week between DENR and the China Metallurgical Construction Group and between the DTI and the Ministry of Commerce to facilitate coordination on mining matters.

Bilateral trade has been growing at an average rate of 55 per cent annually since 2002.  China continues to be the fastest-growing market for Philippine exports and has become the country’s 5th biggest trading partner.

Beijing and Manila have set a bilateral trade target of US$20 billion by 2009.  In 2003, total trade amounted to US$9.4 billion with the Philippines enjoying a trade surplus of US$3.1 billion.  In 2004, RP-China trade amounted to US$13.328 billion with the Philippines enjoying a trade surplus of US$4.79 billion, according to latest records of China’s customs’ authorities.

The Philippines and China are also continuing discussions on China’s support for Philippine National Railways’ rehabilitation of the Calamba-Legaspi (Bicol Express) line in Southern Luzon and for the development of infrastructure in Mindanao and the whole BIMP-EAGA region.

The meeting also affirmed the two countries’ resolve to move to\ward their shared vision of transforming the South China Sea into a region of peace and cooperation.  Pending the conclusion of a regional code of conduct, the Philippines and China will continue to pursue the full implementation of the 2002 ASEAN-China Declaration on the Conduct of Parties in the South China Sea (DoC) together with other claimant states and signatories to the document.

The Philippines and China will also facilitate the conduct of a joint seismic survey in the South China Sea at an early date.

The senior officials also agreed to convene at an early date the 4th Philippines-China Experts’ Group Meeting on Confidence Building Measures (EGM CBM) that will recommend steps to further enhance the level of trust and expand avenues for cooperation in the South China Sea. This is parallel to mechanisms for multilateral dialogue and consultations on the South China Sea issue.

The periodic consultation between senior officials of foreign ministries of the Philippines and China started in 1998 to discuss policy issues, to monitor progress in bilateral relations and to ensure that decisions of leaders are implemented.

The Philippines and China forged an agreement on the Framework of Bilateral Cooperation in the Twenty-First Century in May 2000.  END
 

/jay