Chinese Businessmen to Invest $15.2 Million in PHL

The Chinese government is flexing its arms to expand its businesses outside the mainland China by asking its businessmen to explore  for outside business ventures.

Fujian-based Chinese businessmen said they will invest an initial of $15.2 in the Philippines as part of China’s outside business expansion.

Currently in the Philippines, the Chinese Government is already running a major company in 2GO travel. The former Negros Navigation and ATS (Aboitiz Transport System), which sold and formed as 2GO travel, is now majority owned by the Chinese Government – the biggest local ferry transport system operating in the Visayas and Mindanao, and some parts of Northern Luzon.

2GO has the largest infrastructure in the Philippines with over 400,000 TEU capacity (approximately 50% market share of domestic Philippine freight), 16 passage and freight vessels, 15,000 containers, 35 warehouses nationwide, 550 trucks, and 7,000 employees

Dr. Chu Yanli, senior counselor of the Foreign Affairs Office of Fujian Provincial People’s Government, said the investments will be in mineral exploration, food processing, communications, constructions, wholesale and retail particularly in software and minerals.

“We have approved 18 Fujian enterprises to set up their offices or branches in the Philippines and the approved investment is US $15.2 million,” she told visiting journalists from the Philippines and Thailand during a dinner Tuesday.

Fujian, located on the southeast coast of the Chinese mainland, is one of the fastest growing and most dynamic regions in China.

Chu said that, in 2014, the trade volume between the Fujian and the Philippines reached $4.959 billion.

She said the imports reached $ 3.736 billion and the major products are textiles, mechanical machinery and machine spare parts, sports wear, and some other metal products while the export was $ 1.223 billion, which was a 26.5 percent increase from last year. She said the major export products are minerals, fruits, nuts, wood and wood products.

“This year, from January to May, the import and export volume between Fujian and the Philippines is $1.98 billion or a 12.9 percent increase from last year,” she said.

Chu further said that up to May this year, 1,358 Filipino enterprises have invested in Fujian with a contractual investment of $ 2.885 billion and paid in capital of $ 2.253 billion.

With this, she expressed hope that there will be more partnership and trade connection between the Philippines and Fujian.

“I personally welcome the Philippines. I’m a very good friend especially the Chinese Fujianese. Remember the 40 years relationship between the two countries. China is open to anybody who is open to join its initiatives,” she said.

Chu, meanwhile, refused to comment on the territorial dispute between the Philippines and China on the West Philippine Sea saying it is the central government who should give a statement on it.

She, however, mentioned that China is pushing for peace and development.

“China is a responsible country to do something not just for China but for other countries, as well. It is pushing for peace and not war among countries; it is for openness and inclusiveness, mutual learning and mutual benefits. That is definitely bilateral and not one side,” she said.

Some Filipino economists hope that more Chinese investment in the cou8ntry will not give China a total control over Philippine local businesses in the future.

Chu, however reiterated that the planned investment is not from the Chinese central government, but from the private Chinese businessmen who are not politically affiliated.

/Oto Melara/ Assisted Press

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