Dachelle G.

Maligaya

CBET-01-603E

REACTION PAPER : $1.7 Billion Worth of Purchase Order Made by China

According to Philippine Daily Inquirer by  Roy Stephen C. Canivel,  Chinese

investors have made a purchasing order for $1.7 billion worth of Philippine products.

Chinese Ambassador to the Philippines Zhao Jianhua said that their government

encouraged Chinese firms to buy Philippine products following warmer ties between

both countries under the Duterte administration. The amount, which will cover

agricultural, mineral and chemical products, has ballooned since last week when it was

reported to be $1 billion for agricultural products alone. The purchase agreement comes

more than a week after the 28th Philippines-China Joint Commission on Economic and

Trade Cooperation (JCETC) meeting, the first after a five-year interval as tensions

escalated over the West Philippine Sea territorial dispute.

This purchasing order will have a light surge in business interest in the

Philippines. The Chinese envoy said the purchase agreement was part of their

government’s efforts to balance trade between Philippines and China, but

Philippines exported USD 6.175 billion worth of goods to China while importing USD

11.47 billion worth in 2015. noting that the trade surplus in favor of China.

This purchase agreement was talked about by the Filipinos, other thinks that why

would China agree to a deal to buy $1.7 BILLION from the Philippines, and they will get

nothing in return? Of course China will get something in return. What kind of

businessman invests in something and not expect something in return? Other said that
this is one of the strategy of China, it buys goods for the purpose of having influence.

This time the Chinese came into open and directly engaged business to the government

unlike previous engagement where the business is done by a dummy and in private. It

has been a practice a long time ago by Chinese businessmen to employ Fil-Chinese

company or individual to contract with locals on agriculture products..

This purchase agreement will increase the price of our products unlike there is no

competition where the big company like Lapanday, Marsman or Dole had the monopoly

and just a give little consideration to the farmer-owner contract grower or to the

Cooperative and also this will have a significant effect in economy of the Philippine

specially in production of organic coconut products, coco fiber, aqua marines products,

ethanol, dried sorghum, garments, textiles, fatty alcohol, fruit, copper cathodes,

potassium sulfate, according to the purchase agreements. But then again we have to be

cautious and we should limit it because we all know that it was a two-edged sword and

Chinese will still be Chinese.