On April 26, the Philippines and China sealed 19 trade and investments deals amounting to PHP 633 billion (USD 12.16 billion) during the second Belt and Road Forum in Beijing, reports ABS-CBN. The country’s Department of Trade and Industry (DTI) says that the series of deals is composed of one contract agreement and 13 memoranda of agreement or understanding, as well 2 cooperation and 2 purchase framework deals.
Witnessed by President Rodrigo Duterte and some members of the Cabinet, these agreements are expected to affect infrastructure, food, telecommunications, economic zone development, and energy. According to DTI, this move is predicted to create more than 21,000 employment opportunities.
Some of the largest agreements include a USD 1.5 billion-agreement between Tranzen Group and China Power Investment Holding. This agreement deals with power plants (thermal, hydro and renewable).
Another USD 1.5 billion deal was also established through a Memorandum of Understanding between the local government of Philippine province Davao Occidental and Chinese company Fengyuan Holdings. This deal aims to create a petrochemical processing plant complex which is slated to be built at Tubalan Cove Business and Industrial Park.
The local government of Pampanga, another Philippine province, also had a USD 1.5 billion agreement with Chinese company Macrolink Group to deal with the construction of yatai Industrial Park.
Other significant deals include a memorandum of agreement that establishes a strategic partnership to produce Filipino domestic helpers to China and a memorandum of understanding among the Philippine Department of Energy, Shanghai Electric Group Co Ltd. and Deluxe Family Co.
DTI Secretary Ramon Lopez revealed that these trade and investments deals were signed in a move to improve the country’s manufacturing and exportation performance.
Aside from the 19 new agreements signed in Beijing, the Philippines and China also established 29 deals in November during the Chinese President’s state visit in Manila.