China issues statement on infrastructure cooperation; negotiates 'technical issues'


China has revealed that it has been "negotiating technical issues" with the Philippines over its infrastructure projects, adding that it is open for more discussions on future projects under the new administration.

President Ferdinand 'Bongbong' Marcos Jr. and Chinese Foreign Minister Wang Yi (Photo courtesy of Malacañang)

This was stated by China through a statement on future government-to-government infrastructure cooperation issued by the Chinese Embassy in Manila on Sunday, July 17.

Although China did not specify if these projects under negotiation include the three railway projects, whose loan agreements have been considered withdrawn after the Chinese government failed to act on the funding requests by the former Duterte administration, China reiterated its intention to engage in technical discussions with the Philippines for future projects.

"Our two sides have been negotiating technical issues and made positive progress to move the projects forward," China said.

"China is open for technical discussions over our G-to-G (government-to-government) projects, and is ready to carry our cooperation forward, in close communication with the Philippine new administration," it added.

It also said that China will "tap its own advantage" and support the Philippines to improve its infrastructure.

The statement came after it was made public that the supposed loan applications of the Philippines to China to fund the construction of the Subic-Clark Railway Project, Philippine National Railways (PNR) South Long-Haul Project or the PNR Bicol Express, and Davao-Digos segment of the Mindanao Railway Project (MRP) were automatically withdrawn after the loan applications' validity lapsed on May 31, 2022.

Former Finance Secretary Carlos Dominguez III later canceled the loan applications with China in light of the upcoming government transition and deference to the incoming administration.

On Saturday, July 16, President Ferdinand "Bongbong" Marcos Jr. ordered the Department of Transportation (DOTr) to renegotiate the loan agreements for the three railway projects.

According to China, the infrastructure ties between the two countries have resulted in the completion of 17 projects and more than 20 projects in the implementation pipeline.