Living in a Golden Age

Relations between the Philippines and China stretch back hundreds of years, thriving despite foreign conquests, changes in political systems as well as major shifts in the global arena. Today the relationship is going so well the presidents of the two countries recently proclaimed a "golden age" in bilateral relations.

June 9 marks the 30th anniversary of the establishment of diplomatic relations between the two countries. The political, economic and social situations three decades ago were very different from what they are today, and the challenges facing both countries then were formidable.

The Philippines, in particular, was then under martial law, the economy was less than stable, and there was a large resident ethnic Chinese population whose citizenship and allegiance were thorny questions needing some form of solomonic resolution. Furthermore, establishing official relations with a communist country–epecially one that was so geographically close by and so inscrutable as to its intentions–raised concerns among some sectors of society.

The situation today is, of course, a totally different story. Except for some minor irritants, relations are smooth, centered on robust trade that has been growing at an annual rate of 55 percent since 2002. Last year bilateral trade hit $13.3 billion, well over and ahead of the target of $10 billion envisioned for end-2005. China is the fastest growing market for Philippine exports, and the Philippines enjoyed a $4.8 billion trade surplus last year. The two countries have set a goal of $30 billion in trade by the year 2010.

The state visit last April by Chinese President Hu Jintao further enhanced this relationship, especially with the signing of 10 government-to-government and four business agreements that included $1.1 billion in investments and $524 million in loans.

Our bilateral relations have moved into a faster lane," Chinese Ambassador to the Philippines Wu Hongbo told STARweek in an interview at the embassy residence in Makati City last week. "If you look at the 30 years of goodwill and amicable cooperation we can see the development of relations characterized by four distinct features. First is the enhanced political understanding and trust; second, fruitful trade and economic relations; third, substantial increase in personal exchange; and fourth, the rapid development of cultural relations. As my president said, we are satisfied with the good development of relations. And both your president and my president agreed that China and the Philippines have entered into a golden age of partnership, and they stand for building strategic, constructive relations for peace and development in the future."

One of the most significant projects to be undertaken involves the rehabilitation of the northern railway system or Northrail, with the initial phase of 80 kilometers stretching from Metro Manila to Clark Field in Pampanga.

"In China, there is a popular saying that good road access ushers in prosperity," Ambassador Wu explains the significance of the project. "Here, we see a need for improved infrastructure and we would like to help." He was dismayed by our train service when he actually rode the Southrail from Manila to Lucena, Quezon some months ago.

He shares that latest reports are that the relocation of squatters in the Bulacan stretch of the railway has started, and that seven kilometers have already been cleared. "I understand the Chinese engineers are already on site," he adds, "so we’re all set to go ahead."

The other major project agreement signed during President Hu’s visit is the $300 million investment for the rehabilitation of the Nonoc nickel mine in Surigao del Norte. "But this will take a little more time," he clarifies, "since mining is a very expensive venture, and the risks are quite high", so the project participants are still exploring and looking into the quality and quantity of the mineral deposits as well as their commercial viability. Total project cost, should the project proceed, could reach up to $1 billion.

"So we do want to proceed with this," says the ambassador, "because every mining job will create three to four other jobs, and that is good for the Philippines as well as for China."

Other investment projects under consideration include a $300 million industrial glass factory and a herbal medicine facility.

While things are going relatively smoothly on the trade and economic arenas, there are social is-sues such as the problem of the relatively large number–some estimates place the figure at between 60,000 to 70,000, although there is no way to verify this–of overstaying Chinese nationals. Many of them enter the Philippines through Laoag, where they are given visas upon entry, and from there find their way to Metro Manila and other parts of the country.

"We always tell Chinese nationals traveling abroad to respect and to abide by the laws of the country they are visiting," says the ambassador. "We cannot take the law into our hands (in handling these overstaying Chinese) because this is a foreign country. It is up to the immigration authorities to handle this matter... in accordance with Philippine laws."

The proposal to adopt a high tech idenitifcation card for legally resident aliens is facing some negative reactions, first of which is the requirement for them to replace the cards annually, from the original proposal of every five years. Cost of the cards is also prohibitive at $50 a card. Thirdly, since the company is a private one, the resident aliens fear that their personal data may fall into unauthorized hands and put them at risk.

"My consul general has made representations with the Bureau of Immigration and the Department of Foreign Affairs," says the ambassador. "I hope these differences will be solved through consultations and I urge the authorities to listen to these complaints, for they affect not only Chinese but all foreign nationals residing in the country."

Even more serious than overstaying aliens is their involvement in criminal activities, especially the drug trade. Most of the illegal drug laboratories raided by authorities are either owned or run by Chinese nationals. The ambassador refers to these as "trans-national crimes", and emphasizes that "we should work together to fight them". He cites as an example a February 2004 joint effort to crack down on a drug ring where the suspects were arrested and extradited to China. "These efforts have not relaxed since then," adding that they are now looking at the possibility of sending a Chinese police representative to the embassy here to act as liason between the police in Beijing and Manila.

"We have the sincerity and the determination to work with Filipino authorities to fight all trans-national crimes," he stresses.

Ambassador Wu has been in the Philippines for 14 months, and has visited Cebu, Palawan, Ilocos Norte, Subic. Clark and Nueva Ecija, where the joint Philippine-China rice research center is located. He shares that the scientists at the center have developed high yielding rice varieties that produce up to 10 tons of dried rice per hectare, almost three times more than the current average of 3.5 tons per hectare. Other Chinese scientists are developing high yielding corn varieties as well, in joint efforts with local partners.

He readily admits that he is enjoying his stay "immensely", even though the climate is "a bit hot, but it’s better than the dry coldness in northern China". He enjoys the perpetual greenery, and has just taken up golf. He especially appreciates the friendly and easy-going character of the Filipino. "I enjoy talking to them," he says.

Time and history have proven that Philippine-China relations are capable of surviving all kinds of challenges and difficulties, and present relations are no exception.

"We have many similarities, and so our experiences can be shared," the ambassador says. And while we do have differences as well, our shared past has taught us that we can learn from and grow with these differences as well.