No debt trap in China-funded projects, envoy assures

FILE: President Rodrigo Roa Duterte and President Xi Jinping of People’s Republic of China pose for a photo prior to their expanded bilateral meeting at the Malacañan Palace on November 20, 2018. RICHARD MADELO/PRESIDENTIAL PHOTO

MANILA— There is no danger of any debt trap in China-funded projects that account for about a third of the Duterte administration’s “Build, Build, Build” infrastructure program, a Chinese Embassy official assured Monday.

“Those projects are proposed by the Philippine side and are economically viable and positive for the Philippine economy. I can assure you that there will be no dangers of the so-called debt trap,” said Chargé D’affaires Tan Qingsheng at the China-Philippines Business Forum at the Grand Hyatt hotel in Taguig City.

While Beijing is ready to provide financial and technical support to the development of the country, Tan underscored the need for an “enabling environment” for Philippine-China economic ties to further thrive.

“Both countries need to provide an enabling environment for their enterprises to invest in each other’s country,” the envoy said, as he noted that economic cooperation is a win-win choice for both states and should be the “bedrock” of their relations.

“Some media reported that China-funded projects account for about a third of the government’s 75 flagship infrastructure projects under the “Build, Build, Build” program and the Philippines is facing a debt trap. I cannot understand the logic behind this,” he said.

The statement came days after Chinese President Xi Jinping concluded his historic visit to the Philippines.

During the trip, 29 cooperation documents were signed between the Philippines and China.

Tan said this should translate to a “great opportunity” for both sides to explore more “possibilities” in its partnership, and improve its mutual trust and traditional friendship.