Yesterday (April 27), Chinese President Hu Jintao held a meeting with Gloria Macapagal Arroyo, the President of the
Philippines during his visit to Manila, the capital city of the
Philippines.
The two presidents inked 14 agreements in order to further enhance the trade between the two countries as a part of the development process of
China-ASEAN Free Trade Area (CAFTA).
One of the agreements was on the provision of $500 million low-interest loan to Manila, to be allocated for mining projects, joint offshore exploration operations and telecommunication projects.
Furthermore,
Baosteel group and Jinchuan Nonferrous Metals Corp inked agreements to start formal talks on a scheme to expand a nickel refinery in Surigao, the southern province of the
Philippines. The project is expected to cost approximately $950 million and to be the biggest mining investment of the
Philippines in the last thirty years.
The bilateral trade between the two countries exceeded $13 billion last year and the two countries are targeting annual trade of $30 billion by 2010.
China is the third largest economic partner of the
Philippines, after the US and
Japan.
Beginning from July 1,
China and ASEAN countries will cease tariff applications mutually, as a further process of building CAFTA.