UPDATES ON PHILIPPINES-CHINA RELATIONS

2005

Celebration of 30 years of diplomatic relations

The Philippines and P.R. China marked 30 years of diplomatic relations on 9 June 2005. To celebrate the occasion, both countries have undertaken and will be undertaking a year-long series of meaningful activities. Activities that have already taken place include:

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Visit of Chinese President Hu Jintao to the Philippines on 26-28 April 2005;

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Exchange of congratulatory messages between heads of state and foreign ministers of the two countries (9 June 2005);

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Issuance by both countries of commemorative stamps and envelopes (April 2005 for RP, June 2005 for China);

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Reception hosted by the Embassy and the Chinese People's Association for Friendship with Foreign Countries (10 June 2005);

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Visit to RP of Former Chinese Ambassadors to the Philippines (July 2005);

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Visit to China of 100 Filipino youth headed by National Youth Commission Chairman Paolo Benigno "Bam" Aquino (July 2005);

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Provision by Chinese Government of 10 language scholarships to the Philippine Government (SY 2005-2006)

VISITS

Visit of Chinese President Hu Jintao to the Philippines

Chinese President Hu Jintao paid a state visit to the Philippines on 26-28 April 2005 at the invitation of President Gloria Macapagal-Arroyo. The visit highlighted the celebration by the Philippines and China of the 30th anniversary of the establishment of diplomatic relations.

In his meeting with President Arroyo on 27 April, both agreed that bilateral relations are strong and are entering a "golden age of partnership." Major points of agreement include:

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Pursuit of strong bilateral economic cooperation; setting of a trade target of US$30 billion by 2010;

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Further cooperation in the defense and security fields;

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Satisfaction with the trilateral agreement on joint seismic undertaking;

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Undertaking meaningful activities to mark the 30th anniversary of diplomatic relations;

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China's continued support for RP's agricultural modernization; and

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Mining cooperation.

After their meeting, Presidents Arroyo and Hu witnessed the signing of 10 government-to-government agreements and four business agreements, as follows:

Government

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Opening of a Chinese Consulate in Laoag

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General loan agreement of US$500 million of preferential buyer's credit from the Government of China to the Philippines

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MOU on infrastructure cooperation

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MOU on promotion of trade, investment and economic cooperation

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Agreement on economic and technical cooperation

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MOU on the Early Harvest Program between RP and China under the ASEAN-China Framework Agreement on Comprehensive Economic Cooperation

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MOU on the special treatment for Philippine rice

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Framework agreement on provision of RMB 200 million concessional loan

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MOU on maritime cooperation

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Cooperation agreement on youth affairs

Business

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Agreement between Philnico and Jinchuan/Shanghai Baosteel Company on a US$950 million investment in the redevelopment of the Nonoc Project

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MOU on cooperation between China National Machinery and Equipment Corporation (Group) and North Rail for Section 2 Phase 1 of the Northrail Project

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Framework agreement for upstream opportunities in the Calamian Area in offshore northwest Palawan

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Project of integrated GSM system between Huawei and Digitel Telecommunications

At the end of the visit, the two countries issued a joint statement.

Visit of Foreign Secretary to China

Philippine Secretary of Foreign Affairs Alberto G. Romulo visited Beijing on 28 February- 2 March 2005 at the invitation of Chinese Foreign Minister Li Zhaoxing. Secretary Romulo held talks with Minister Li and paid courtesy calls on Chinese Premier Wen Jiabao and Chinese Communist Party International Department Minister Wang Jiarui. He also delivered a speech on Philippines-China relations at the Chinese Academy of Social Sciences.

Visit of Philippine Chief Justice to China

Philippine Supreme Court Chief Justice Hilario Davide led a delegation of 56 justices, judges and lawyers to attend the 22^nd Biennial Conference of the World Jurist Association in Beijing and Shanghai on 4-10 September 2005.

In Beijing, the Chief Justice also met with Chinese Supreme People's Court President Xiao Yang and exchanged views on Philippines-China relations, including on bilateral legal cooperation.

MEETINGS

RP-China Foreign Ministry and Consular Consultations

The 14^th Philippines-China Foreign Ministry Consultations were held on 26 January 2005 in Manila to review the current state of bilateral relations as well as to chart future directions of the relationship. Philippine Foreign Affairs Undersecretary for Policy Sonia C. Brady and Chinese Vice Minister Wu Dawei co-chaired the meeting.

The Second RP-China Consular Consultations were held on 27 January 2005 in Manila. Foreign Affairs Assistant Secretary for Consular Affairs Teresita V.G. Barsana and Chinese Foreign Ministry Consular Department Director-General Lou Tianguang co-chaired the meeting.

First RP-China Defense and Security Dialogue

The first Philippines-China Annual Defense and Security Dialogue was held on 23 May 2005 at the Philippine Department of National Defense (DND). DND Undersecretary for Policy Antonio Santos headed the Philippine delegation, while General Xiong Guangkai, Deputy Chief of Staff of the People's Liberation Army, led the Chinese delegation. The next round of the dialogue will be held in Beijing in 2006.

24^th Meeting of the RP-China Joint Trade Committee Meeting

The Philippines and China held the 24th Meeting of the RP-China Joint Trade Committee (JTC) on 9-10 June 2005 in Makati. The Philippine delegation was headed by Senior Trade Undersecretary Thomas G. Aquino while the Chinese delegation was headed Commerce Vice Minister An Min.

Both sides reviewed the state of bilateral economic cooperation and agreed to strengthen cooperation in trade, agriculture, exploration of energy and mineral resources, and infrastructure construction.

Parallel with the JTC was the convening of the inaugural meetings of the Joint Working Groups on Infrastructure Cooperation and on Mining Cooperation.

First Meeting of the RP-China Joint Commission for Fisheries

The First Meeting of the Philippines-China Joint Commission on Fisheries was held in Makati on 30 March-2 April 2005. Co-chaired by Philippine Agriculture Undersecretary Cesar M. Drilon and Chinese Vice Minister for Agriculture Fan Xiaojian, the meeting discussed areas for cooperation between the two sides. These include fishery investments, research and technology, and safety of property and life at sea.

Third Meeting of the Joint Committee on Agriculture

The Third Meeting of the Philippines-China Joint Committee on Agriculture was held in Makati on 30 March-1 April 2005 under the chairmanship of Mr. Romeo S. Recide, Director of the Bureau of Agricultural Statistics, Philippine Department of Agriculture and Mr. Lu Xiaoping, Deputy Director-General of the Department of International Cooperation of the Chinese Ministry of Agriculture.

The two sides reviewed achievements made in agricultural cooperation between the two countries and discussed the program for future cooperation.

Agreements/ MOUs

RP-China-Vietnam Agreement in the South China Sea

The Philippine National Oil Company (PNOC), the China National Offshore Oil Company (CNOOC), and the Vietnam Oil and Gas Corporation (PETROVIETNAM) signed an agreement on 14 March 2005 to conduct joint marine seismic survey in certain areas in the South China Sea.

In a joint statement, the three oil companies' affirmed that [the agreement] will not undermine the basic positions held by their respective governments on the South China Sea issue and will contribute to the transformation of the South China Sea into an area of peace, stability, cooperation and development.

RP-China Agreement on Mutual Visa Exemption for Holders of Diplomatic and Service (Official) Passports

The RP-China Agreement on Mutual Visa Exemption for Holders of Diplomatic and Service (Official) Passports, signed during the state visit of President Arroyo to China, entered into force on 28 February 2005.

MOU on Mining

An MOU on Mining Cooperation was signed between the Philippine Department of Trade and Industry and China's Ministry of Commerce on 18 January 2005 during the visit to Beijing of Philippine Trade and Industry Secretary Cesar Purisima and Environment and Natural Resources Secretary Michael Defensor on 17-19 January 2005. The two ministers briefed Chinese officials on recent developments in the Philippine mining sector and invited Chinese businessmen to participate in the development of the Philippine mining industry.

2005-2007 Philippines-China Cultural program

The Philippines and China signed the 2005-2007 Executive Program of the Philippines-China Cultural Agreement on 12 November 2005 on the sidelines of the Cultural Asia Ministerial Meeting in Foshan City, Guangdong.

Signed by National Commission for Culture and the Arts Chairman Ambeth R. Ocampo and Chinese Minister of Culture Sun Jiazheng, the agreement covers five general areas and 17 items of exchange in the fields of culture, the arts, history, education, research, books and publications, and film. The Program is the 13^th implementing protocol of the 1979 Philippines-China Cultural Agreement.

MOU on sports training

Philippine Sports Commissioner William Ramirez and Chinese General Administration of Sports Minister Liu Peng signed a Supplemental Memorandum of Understanding on Sports Cooperation on 8 April 2005 in Beijing.

Under the MOU, China will provide assistance in the training of Philippine athletes in the following sports disciplines: athletics, canoe/kayak, diving, fencing, football, gymnastics, rowing, swimming, table tennis, volleyball, beach volleyball, weightlifting, wrestling, and wushu.

Sister-city agreement between Manila and Beijing

Manila and Beijing became sister-cities on 14 November 2005. Under the agreement signed by Manila Mayor Lito Atienza and visiting Beijing Mayor Wang Qishan, the two cities agreed to have more exchanges and cooperation in the fields of economy, culture, education, city construction, sports, health and sanitation.

2005 RP-China trade

Based on statistics published by the General Administration of Customs of China, trade between the Philippines and China reached US$17.6 billion in 2005, up 32 percent from 2004.

Philippine exports to China amounted to US$12.87 billion, while imports from China reached US$4.69 billion, representing growth rates of 42 and 9.8 percentages respectively. The Philippines posted a trade surplus of US$8.18 billion.

PAL flights to Beijing resumed

Philippine Airlines (PAL), the Philippines' national air carrier, resumed direct flights to Beijing on 11 November 2005 after a hiatus of 16 years.

First-ever Philippine film festival in China

The Philippines held its first-ever film festival in China on 23-28 November 2005 at the Oriental Plaza Star City Cinema.

2004

New Philippine Ambassador to China

Philippine Ambassador to China Willy C. Gaa presented his credentials to Chinese President Hu Jintao on 16 February 2004 at the Great Hall of the People.

Cooperation on combating illegal drugs

In the war against illegal drugs, Philippine and Chinese police authorities made simultaneous arrests and seizures on 12 February in both countries. The cooperation realizes the bilateral Memorandum of Understanding on Cooperation against the Illicit Traffic and Abuse of Narcotic Drugs, Psychotropic Substances and Precursor Chemics signed during the visit of President Arroyo to China in 2001.

North Rail

The Philippines' Department of Finance and China's Export-Import Bank (Eximbank) signed on 26 February 2004 a US$400 million loan package to implement Phase 1, Section 1 of the Philippines' North Rail project. The loan will be for the construction by the China National Machinery and Equipment Corporation Group (CNMEG) of a 32-kilomater double-tract railway system from Caloocan City to Malolos Bulacan.

23^rd Session of RP-China Joint Trade Committee

The 23^rd Session of the RP-China Joint Trade Committee was held in Beijing on 15-16 March 2004, during which both sides exchanged views on enhancing bilateral cooperation in trade, investments, agriculture, industry, resources development, railways systems development, and regional and multilateral issues. The Philippine side was headed by Trade and Industry Undersecretary Thomas G. Aquino while the Chinese side was headed by Commerce Vice Minister An Min.

Parliamentary and Party exchanges

Philippine Senate President Franklin Drilon and other members of the Liberal Party visited China on 6-11 April at the invitation of the International Department of the Communist Party of China to promote party-to-party ties. The delegation met with CPC Minister Wang Jiarui and National People's Congress Chairman Wu Bangguo.

Senate President Pro Tempore Juan M. Flavier visited China on 15-23 May 2004 at the invitation of the Chinese People's Consultative Conference to look into ways of promoting traditional Chinese medicine in the Philippines.

Chinese mission to BIMP-EAGA

A fourteen-member delegation headed by officials of China's Ministry of Commerce visited Mindanao on 23-29 April 2004 as part of a visit to BIMP EAGA countries to identify investment opportunities.

13^th RP-China S&T Protocol

The 13^th RP-China Protocol on Scientific and Technological Cooperation was signed on 22 April 2004 in Manila. Areas of cooperation range from soil erosion control to robotics.

China congratulates President Arroyo

Chinese Foreign Minister Li Zhaoxing attended the inauguration ceremony of President Arroyo on 30 June 2004 to personally convey the message of congratulations from Chinese President Hu Jintao.

Opening of Tourism Attache's Office in Beijing

On 21 July 2004, the Office of the Philippine Tourism Attache in Beijing was inaugurated by Philippine Tourism Secretary Roberto Pagdanganan. Ms. Jazmin Esguerra was assigned as the first Philippine Tourism Attace to China.

State visit of President Gloria Macapagal-Arroyo to China

On 1-3 September 2004, President Arroyo made a state visit to China at the invitation of Chinese President Hu Jintao.

During her visit, President Arroyo held bilateral talks with President Hu Jintao, Chairman Jiang Zemin of the Central Military Commission and Premier Wen Jiabao. Both sides agreed that bilateral relations were at their highest point and committed to strengthen various cooperation and consultation mechanisms.

In her meetings with Chinese leaders, the President emphasized the determining influence of China in the economic evolution and the security situation of the region. She also thanked Chinese leaders for China's role in the agricultural and infrastructure development of the Philippines and the latter's importance in the realization of her "10-point agenda," a national socio-economic development program that seeks to better the lives of Filipinos at a concrete level.

In terms of trade, a target of US$20 billion was set for the next five years (i.e., by 2009).

Aside from official meetings, President President Arroyo also delivered a speech at the opening ceremony of the 3^rd International Conference of Asian Political Parties (ICAPP) at the Beijing Hotel on 3 September. She also visited Guangzhou and Xi¡¦an.

Six government-to-government agreements and various business agreements were signed during the visit:

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Agreement on Mutual Visa Exemption for Holders of Diplomatic and Official (Service) Passports

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Memorandum of Understanding between the Department of Agriculture of the Philippines and the Ministry of Agriculture of China on Fisheries Cooperation

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Implementation Program of the Memorandum on Tourism Cooperation Between the Department of Tourism and the China National Tourism Administration

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An Agreement for Joint Marine Seismic Undertaking on Certain Areas in the South China Sea By and Between Philippine National Oil Company and China National Offshore Oil Corporation

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Supplemental Memorandum of Understanding Between North Luzon Railways Corporation and China National Machinery and Equipment Corporation (Group)

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Letter of Intent on Friendly Exchanges and Cooperation between the Office of the Press Secretary of the Philippines and the State Council Information Office of China

A Joint Press Statement was issued at the end of the visit, reflecting the agreements reached between the Philippines and China.

China-ASEAN Expo

The Philippines, led by Trade and Industry Undersecretary Thomas G. Aquino, participated in the first ever China-ASEAN Expo (CAEXPO) in Nanning on 3-6 November 2004.

Sister-city agreements

Muntinlupa City signed a sister-city agreement with Liuzhou of Guangxi Zhuang Autonomous Region while San Fernando City forged a similar agreement with Hezhou City also of Guangxi on 4 November as part of the First CAEXPO in Nanning.

Visit of Defense Secretary to China

Philippine Defense Secretary Avelino Cruz, Jr. visited China on 7-14 November 2004 at the invitation of Chinese Defense Minister Cao Gangchuan. During the visit, both sides signed MOUs on defense cooperation.

RP-China trade

Trade between the Philippines and China reached US$13.33 billion in 2004, up 41.8 percent from 2003. The Philippines posted a trade surplus of US$4.79 billion.

2003

Visit of Speaker de Venecia to China

Speaker Jose de Venecia, Jr. headed the Philippine delegation to the Meeting of the Executive Council for the Association of Asian Parliaments for Peace (AAPP) in Beijing on 23-26 January 2003. During the visit, he also had a bilateral meeting with Chairman Li Peng of the National People's Congress.

Prior to the meeting, Speaker de Venecia led a 60-member delegation in a wreath-laying ceremony at the new Rizal Shrine in Xiongque Village in Jinjiang City in Xiamen. The Shrine was built as a tribute to the Philippine national hero's Chinese ancestral roots and to symbolize the strong bond of friendship existing between the two sides.

Philippine-Sino Center for Agriculture Technology inaugurated

President Gloria Macapagal-Arroyo formally inaugurated the Philippine-Sino Center for Agriculture Technology (PhilSCAT) on 20 March 2003. PhilSCAT is located inside the campus of the Central Luzon State University in Munoz, Nueva Ecija. It is the first grant project of China to the Philippines that is aimed at helping the Philippines attain self-sufficiency in rice.

Philippine Trade Exhibition in Shanghai

The Philippines organized its first solo trade fair in China from 27 to 30 March 2003 in Shanghai with the theme: "Ties that Bind: A Philippine Solo Exhibition."

Sports cooperation

Chinese Deputy Director of the State General Administration of Sport of China visited the Philippines in March 2003 at the invitation of Mr. Eric Buhain, Chairman of the Philippine Sports Commission. During the visit, both sides agreed to work for cooperation in sports training. Both sides also agreed to work together for the inclusion of wushu as a sport in the 2008 Olympics.

Visit of Interior Secretary to China

Philippine Interior and Local Government Secretary and Chairman of the Dangerous Drugs Board of the Philippines Jose Lina, Jr. visited Beijing on 3-7 August 2003 to strengthen partnership with China in combating the spread of narcotics and other illegal drugs. He was received by the Chairman of the National Narcotics Control Commission of China, State Councilor and Public Security Minister Zhou Yongkang.

Both ministers agreed to institutionalize the coordination of their respective anti-narcotics bureaus in stopping the cross-border trade of narcotics and other illegal drugs and precursor chemicals.