PORT MORESBY— China's One Belt, One Road Initiative would not compromise Philippine sovereignty, officials said yesterday, after US Vice President Mike Pence warned nations against loans and projects that come with strings attached that could lead to staggering debt.
Speaking to Asia-Pacific Economic Cooperation (APEC) and business leaders here on Saturday, Pence took a jab at the initiative, saying Asian countries should avoid loans that compromise their sovereignty and support poor-quality projects.
The One Belt, One Road Initiative aims to convince about 60 countries to invest in infrastructure projects to develop land and maritime routes following the old Silk Road network that once linked China to Central Asia and Europe.
While Pence did not mention the Chinese initiative, he mentioned terms that clearly alluded to the $1 trillion project, whose supporters claimed would promote free trade across Asia and Europe.
Pence said the financing initiative being offered by the US and supported by its allies Japan and Australia is the “better option” as it would not “drown” its partners in a “sea of debt.”
He said the US-led initiative would prioritize infrastructure in the Indo-Pacific and would not compromise nations’ independence.
But the Duterte administration is convinced that the One Belt, One Road Initiative is beneficial to the Philippines.
Trade Secretary Ramon Lopez said the government was able to secure reasonable loan terms from China.
“The Department of Finance (DOF) and the other agencies have reviewed the terms that would be the best for us. We won’t enter into a deal (with) unreasonable terms and terms that are worse than (those offered by) other sources,” Lopez said in a press briefing here.
“(Based on) the report last time of the (DOF), we got good terms, very concessional. It’s like I think 30 years or more and then very low rates and of course... the prices also of these projects are what we can say really reasonable or better than the others,” he added.
Lopez also allayed concerns that the Chinese loans would compromise Philippine sovereignty.
“We are very clear on sovereignty—mutual respect for sovereignty is very solid as far as we are concerned,” the trade chief said.