Xi’s Manila visit yields raft of deals

Bloomberg

Xi Jinping sealed a raft of deals on Tuesday during a trip to Manila as Philippine President Rodrigo Duterte’s administration shrugs off US warnings about accepting Chinese cash.
Xi’s two-day trip marks the first state visit to the Philippines by a Chinese president in 13 years. The visit reflects warmer ties that began when Duterte took office and pivoted toward China and away from the US, a longstanding defense ally.
Among the 29 deals signed by the Philippines and China was a framework agreement that sets the stage for their joint oil and gas exploration in the South China Sea — an issue that roiled ties between Beijing and Duterte’s predecessor — according to televised proceedings of the visit.
The announcements build on $24 billion in investment pledges made two years ago when Duterte visited Beijing.
At a joint briefing with Duterte on Tuesday evening, Xi said China and the Philippines will manage contentious issues in South China Sea and work with other Southeast Asian nations to create a code of conduct in the waters.
Xi’s trip has taken on even greater significance given it comes shortly after the Asia
Pacific Economic Cooperation summit ended without a joint statement for the first time, due to simmering US-China trade tensions. Vice President Mike Pence attacked China at APEC, calling on member states to avoid loans that will leave them indebted to Beijing.
“We must take his statement with a grain of salt — of course the US would not want the whole world to be dependent on China,” Philippine Budget Secretary Benjamin Diokno said at a forum in Manila.
Pence’s statements don’t apply to Duterte’s government, which has a “rigorous process” to evaluate funding from Beijing, he said.
Indeed, much of the money that China has previously pledged has yet to come through. Chinese bureaucracy is having difficulty complying with requirements for projects in the island nation, Diokno said.