Chinese PM winds up RP visit, signs 20 economic pacts with GMA

Chinese Premier Wen Jiabao wound up his two-day state visit to the country yesterday, but not before signing 20 economic agreements with President Arroyo worth billions of dollars in investments.

Wen met with Senate President Manuel Villar and also was to have lunch with Speaker Jose de Venecia Jr. yesterday before returning to Beijing, said a Chinese embassy officer, who spoke on condition of anonymity because he was not authorized to speak with the media.

Wen had dinner with Mrs. Arroyo late Monday after attending a regional summit in Cebu City.

The Chinese state news agency Xinhua said the two leaders agreed that their countries "should enlarge friendly exchanges at all levels," strengthen cooperation between their executives, legislature, political parties and the military, and push "strategic cooperation."

The two leaders also sought to deepen defense and security cooperation, strengthen consultations and coordination in fighting terrorism, drugs and transnational crimes, Xinhua said.

Officials, on the other hand, said the 20 economic agreements signed by both leaders include a $500-million loan for the Philippines’ North Rail project. A contract for China National Machinery Industry Corp. to construct the major railway connecting Manila to northern provinces as well as rehabilitate an existing railway was agreed on.

A $1.9-million technical cooperation agreement and a memorandum to deepen agricultural and fisheries cooperation were also signed, as well as a contract for the Exim Bank of China to loan $500 million to finance rural programs here, the Palace said.

Agriculture Secretary Arthur Yap said China’s Fuhua Group Ltd. also pledged to invest some $3.81 billion to help develop higher-yielding corn and rice here, while the Beidahuang Group plans to invest some $120 million for all-weather greenhouses that would produce flowers for export.

The Beidahuang Group is the corporate state farm of China’s Heilongjiang province.

The generally friendly ties between Beijing and Manila were marred in the past by their conflicting claims over the Spratly Islands in the South China Sea and alleged poaching by Chinese fishermen in Philippine waters.

Mrs. Arroyo and Wen said their countries back the common development of the area and encourage "trilateral cooperation by China, the Philippines and Vietnam in maritime seismological research in the South China Sea," Xinhua reported.

Philippine officials also expressed concern over Chinese citizens staying illegally in the country, and the flow of drugs from the mainland. However, a recent joint anti-drug operation involving China’s National Narcotics Control Commission showed increasing cooperation against Chinese drug syndicates. — AP, AFP