'One Belt, One Road' Initiative to improve PHL-China trade relations - HSBC

The "One Belt, One Road" Initiative is seen to improve trade relations between the Philippines and China, according to the Hongkong and Shanghai Banking Corp. Ltd. (HSBC).

"China's Belt and Road initiative is being undertaken with potential to bring significant benefits to Southeast Asian economies in the form of increased trade and investments in infrastructure. Philippines would mutually benefit from the plan," HSBC said in a statement.

The initiative is a pet project of Chinese President Xi Jinping to connect Asian and European markets by pouring billions of dollars into infrastructure projects such as railways, ports, and power grids.

"This is the perfect time for the implementation of such an initiative. The Duterte Administration's foreign policy pivot toward China gives a big push to its own Philippine Development Plan (PDP) as it puts together plans, reforms, policies, and targets to build a more sustainable economy," HSBC said.

To recall, President Rodrigo R. Duterte earlier said that his administration will pursue an independent foreign policy, and said that he's ready to deal with China and Russia.

"As the fastest rising power of the 21st century with the world's largest foreign currency reserve of $3.2 trillion, China, through the Belt and Road initiative, can offer the Philippines many economic opportunities that are necessary to improve Philippine infrastructure, enhance bilateral trade, boost tourism, raise employment, alleviate poverty, and broaden social services to the Filipino people," HSBC said.

The Philippines and China in March already exchanged letters related to the feasibility studies of two infrastructure projects in the country — the Panay-Guimaras-Negros Bridges Project, and the Davao City Expressway Project.

Aside from this, the government plans to pour as much as P8 trillion to finance the country's "golden age of infrastructure" over the next six years, with P860.7 billion allocated for big-ticket projects this year alone.

"As more of China’s Belt and Road projects are put together and funded, more infrastructure project around the ASEAN nations including the Philippines will benefit from the financing activities," HSBC said.

Duterte, along with 28 other heads of state, is currently in China for the initiative. —ALG, GMA News