RP must liberalize economic policies — China

The Philippines must liberalize its economic policies to attract more investors, China’s top diplomat to Manila urged the government of President Aquino.

Ambassador Liu Jianchao, at a press briefing Wednesday, singled out mining as one of the major industries that should undergo policy reforms as many Chinese investors complain of going through many obstacles before they can do business in the country.

Liu said there is a “great potential” in local mining but too much bureaucracy turns off investors.

“I know that there are a lot of concerns from both the Chinese and Filipinos about cooperation, about legal arrangement, environment, commercial consideration, profit considerations. There are many layers

and channels, and so many people to talk to and work with,” Liu said.

Removing all these barriers and restrictions, he said, would indicate a more efficient economy and lead to more investments in the Philippines .

“It really hampers down a little bit the process of cooperation,” Liu said. “I do hope economic policies will be more liberalized so that cooperation between the Philippine companies and Chinese companies will become easier.”

However, Philippine lawmakers have been clamoring for a moratorium on mining, citing environmental degradation and displacement of communities in areas of operation, resulting to division of local indigenous tribes.

Aquino supports a more open mining industry and even cited it as one of his administration’s key economic priorities.

China at the moment does not have substantial investments in this sector, but Liu hinted at a more active engagement in the industry once government policies have changed.

“I think the mining cooperation of China and this country can have direct and efficient dialogs and negotiations to further cooperation in mining. So I hope that we can reach consensus based on a win-win situation,” Liu said.

President Aquino is going to take up the issue of the Spratlys and other islands in the West Philippine Sea when he visits the People’s Republic of China next week.

According to Executive Secretary Pacquito Ochoa the issue of the Spratlys has been included in the agenda of the working visit.

“I was just informed that the DFA has already mentioned that it is…it will be taken up,” Ochoa told members of the House Committee on Appropriations during the budget hearing of the Office of the President yesterday.

Ochoa, however, stressed that the visit is a working visit and not a state visit that will focus on how both countries would improve its bilateral trade relations.

He said that the Philippine government will stand by its position on the disputed islands in the West Philippines Sea.

Answering questions propounded by Cagayan de Oro Rep. Rufus Rodriguez, Ochoa said that the Philippine government knows the extent of its sovereignty in the West Philippine Sea.

“Our case is solid and we really believe in the extent of our sovereignty and the extent of that sovereignty extends to the West Philippine Sea and we recognize that there is an issue in so far as the Spratly islands is concerned,” the executive secretary said even as he cautioned the lawmakers that the Philippine government have to be “aware and conscious of the sensitivities involved in this type of issues.” With Michaela P. Del Callar and Gerry Baldo, daily Tribune