By Bernie Cahiles-Magkilat Chinese firms yesterday signed $4.6 billion worth of investments and trade deals for the Philippines. Leading these investments was Chinese steel company Panhua Group Co., Ltd., which pushed its proposed $3.5-billion integrated steel project a step closer to reality with the signing of a memorandum of agreement to facilitate all registration and location processes in a 300-hectare space inside the Phividec Industrial Estate in Tagoloan, Misamis Oriental. Panhua Group Chairman Xinghua Li and Philippine Economic Zone Authority (PEZA) Director General Charito B. Plaza signed the MOA at the PH-China Trade and Investment Forum, which was attended by senior executives of Chinese businesses and top government officials from Chongqing municipality. The $3.5-billion investment is only for the first phase of the project to be implemented end this year right after the approval the project. The next two phases would probably require. “The last time we met with President Duterte in Beijing, we said we will start construction as soon as we secure the land in Phividec,” he said. With the MOA, the company expects to start construction of the project by end this year. Commercial operation will commence after a three-year construction period. The integrated steel project will have a production capacity of 10 million MT a year. But more capacity will be added once phase 2 and 3 phases come on line. Panhua will produce steel slabs, galvanized color coated, among others for both the domestic and foreign markets such as EU, US, Russia. Li said the next phases might be bigger than the first phase. The first phase is expected to employ 20,000 to 30,000 people. The company also plans to put up its own industrial estate, which is another 300 hectares that may be located in the same Phividec or separate from it in another location to be called China Chongqing Industrial Park. Plaza said the company was asking for higher domestic sales allowance to as much as 70 percent from the present 30 percent allowable of total production. PEZA will endorse Panhua’s request for approval by President Rodrigo Duterte.   $1.1 billion Chongqing trade deals Meanwhile, 9 large Chinese companies also signed agreements for their planned $1.1 billion worth of projects in the country, mostly for trading activities of motor vehicles and strategic cooperation deals for food, cargo service and economic zone development. These new business deals include PT. Sokonindo Automobile in partnership with QSJ Motors Philippines, Inc. ($21.75 million), Chongqing Loncin Import & Export Co. Ltd. and Yingang Motorcycle Philippines Ltd., Inc. ($21.13 million); Qinling Motors Co. Ltd. and Kingling Motors Philippines, Inc. ($30 million); Chongqing Lifan Industry Group Import & Export Co. Ltd. and Mitsukoshi Motors Phils., Inc. ($30 million); Chongqing Hongji Fruit Co. Ltd. and Davao Eng Seng Food Products Co. $100 million); Develop Century International Trade Chongqing Sub-Council and Federation of Filipino Chinese Chambers fo Commerce and Industry; Develop Century International Logistics Co. Ltd. and Sincerity International Cargo Service Corp.; and, Hyundai Motor Group and Beijing Hyundai Auto and Hyundai Asia Resources, Inc. These firms participated in yesterday’s PH-China (Chongqing) Trade and Investment Forum, which gathered some of the biggest Chinese firms and the country’s largest conglomerates at Conrad Hotel. Trade and Industry Undersecretary Rowel Barba said in a welcome speech cited China for becoming the country’s largest trading partner with $30.8 billion in 2018 amid its growing foreign direct investments into the country. “DTI is committed to aggressively promote business to China, and we have identified Chongqing as a destination being the largest commercial center in South China,” said Barba. Already, he said, Chongqing is one of the four cities in China where the Philippines holds a consulate office. At the forum, Barba promoted some Philippine products that may be interest to Chongqing. These are household items such as food, cosmetics, and furniture. As the third largest motor vehicles and motorcycle production hub in China, the DTI also urged these Chongqing firms to look at the Philippines as an investment destination for motor vehicle production and for these firms to participate in the government’s car manufacturing resurgence program. The Chinese business were also urged to make the Philippines a part of its supply chain for their assembly operations. Barba cited Chongqing as one of the biggest steel producers as he urged these firms to locate their steel projects in the country. In fact, he said that DTI is working closely with Panhua Steel group to operationalize their planned steel project in the country soon. President Duterte would like to see an integrated steel plant established during his term. He also urged Chinese laptop manufacturers to look at the Philippines to be able to export overseas. To further entice these businesses, Barba assured the Chinese firms of government protection of their investments.