Makati Business Club welcomes closer ties with China

The Makati Business Club (MBC) welcomed yesterday the government’s push to revitalize the country’s relationship with China, but said it should not be to the detriment of ties with existing allies such as the United States.

“We believe that as we strengthen ties with one of our neighbors, this should be in tandem with continuing to nurture our partnership with existing strategic allies and friends. In particular, our relationship with the United States, particularly on the economic front, should remain solid and should also be further expanded,” the MBC said in a statement.

The MBC reminded the government the US is not only the country’s third larg- est trading partner, but is also a dependable ally during times of need.

“We should also note that in times of need the United States has delivered $90.9 million worth of financial aid and has offered extensive manpower and technical support to our rescue and rehabilitation efforts in the aftermath of Typhoon Yolanda. Similarly, the United States makes up 36.1 percent of official development aid grants of the Philippines in contrast to others with much smaller grants portfolio extended,” the MBC said.

“The United States’ Millennium Challenge Corp., in particular, has extended over $433 million worth of anti-poverty and human development programs in the Philippines since 2006. These figures reflect the invaluable commitment and steadfastness of the US in assisting the growth of our people and our communities,” the business group added.

President Duterte in his state visit to China last week announced he is cutting military and economic ties with the US. This statement was later clarified by the President when he returned to the country Friday night, wherein he said it did not mean severance of ties.

In providing context to Duterte’s controversial pronouncement, Trade Secretary Ramon Lopez said it meant more of the Philippines being independent on policies, whatever may be good for the country.

“We support the drive for an independent foreign policy, particularly during this time when the Philippines has gained international respect, recognition and confidence over the past few years,” the MBC said.

Given China’s stature as a major player in global affairs and the Philippines’ steady economic rise, the MBC said both countries stand to benefit from renewed and much closer ties, particularly in trade and investment.

The group cited China’s expertise in infrastructure as critical to the Philippines’ development as the country seeks to close the massive infrastructure gap that has been hindering its growth for the past years.

China is the Philippines’ second largest trading partner, contributing $ 10.8 billion to the country’s imports and $6.4 billion to exports.

The Philippines, meanwhile, has invested at least $75 million in China while China has invested $570,000 to the country as of 2015.