More Chinese investments seen under Silk Road Initiative

More Chinese investments are expected to pour into the Philippines as China pursues its Silk Road Initiative, which makes southeast Asia a major component in this ambitious plan.

Xu Ningning, executive president of the China-ASEAN Business Council, said that Chinese President Xi Jinping launched the Silk Road Initiative on September 10, 2013 to pursue this plan which started decades ago.

The Silk Road has two components: land based and maritimebased. Its primary goal is to provide connectivity through a land route from China going through central Asia and to Europe, popularly known as the Marco Polo route. The maritime route is from China to southeast Asia up to the Middle East.

“China wants to develop all of these countries as it opens to other countries for cooperation and development,” Xu said.

There are five principles involved in the Silk Road Initiative built around the idea of connectivity: common policy, infrastructure, trade, financing, and heart to heart.

Xu said that Chinese firms are already gearing up their investments in these routes following China’s creation of Silkroad International Chamber of which the Philippines is one of the 40 vice-chairmen.

On the part of the Philippines, the Philippine Silkroad International Chamber has been organized and led by businessman Francis Chua. The local Silkroad chamber has been registered with the Intellectual Property Office of the Philippines and the Securities and Exchange Commission. Official launching of the new business chamber is set next month.

“It is necessary to put up this local chamber because Philippine firms participating in this initiative will need the necessary funding and technical support,” Chua said.

“As far as China is concerned, money is not an issue as long as the projects are good. Filipino firms can tap funding from the Silkroad International Chamber.”

Chua said that several projects, not just infrastructure, are going to find their way in countries covered by the Silkroad initiative.

“The top destination of Chinese firms would be southeast Asia,” Xu added.

Last week, Xu led a business mission consisting of top ten construction companies from China, exploring for the first time all kinds of construction projects in the Philippines.

Xu said it is more conducive now for Chinese to do business in the country as relations between the two countries have been warming up under the new government of President Rodrigo Duterte.

The 30-man mission met with three government secretaries including Secretary Arthur Tugade of the Department of Transportation, Secretary Ramon Lopez of the Department of Trade and Industry and Secretary Mark Villar of the Department of Public Works and Highways.

According to Xu, the mission members belong to the top construction companies in China with expertise in infrastructure projects including flood control, industrial parks, construction materials, engineering, railways, among others. Some of the mission members were responsible for the construction of the iconic Birds Nest, the stadium China built for its hosting of Olympic and the CCTV building headquarters. These companies have also projects in southeast Asia and Africa.

Xu said the group believes in the dawning of better relations between the two countries under President Duterte’s government.

“It is time to take off and for Chinese companies to come here,” said Xu.

Chua, who is also founder of the International Chamber of Commerce of the Philippines, noted that there were lots of efforts and commitments from both sides before but those just fizzled out.

“We talked about lots of investments in previous years but all fizzled out, but this one they believe the two countries have better relations so they are encouraged to invest in the country,” said Chua.

“They want to look at the possible projects and to contribute in the technology and equipment supplies. They could be contractors, investors and owners. They are also looking at partnerships and joint venture deals with Filipino businessmen.”

As far as China is concerned, Chua said, ‘money is not an issue as long as the projects are good.”

“It is more conducive now to do business in the Philippines especially for the Chinese,” he said.

In the first half of this ear, the top destination of Chinese investors are Southeast Asian countries mostly to Singapore followed by Thailand, Laos and Indonesia.