Steel Asia and the HBIS Group of China signed a memorandum of understanding to establish an integrated steel mill in Batangas province to support the Philippines’ bid to become a major producer of high-quality and safe steel products by 2030.
The Trade Department said in a statement the deal was one of the private sector agreements signed with Chinese partners during the 5th visit of President Rodrigo Duterte to China on Aug. 28 to 31.
The planned steel mill will allow the country to produce basic iron and steel products, including flat products that are not yet being produced in the country.
Another set of agreements was signed by Tranzen Group and its Chinese partners, an indication of the progress of joint projects on national WiFi and emergency services, socialized housing, expressways and power plants.
Trade Secretary Ramon Lopez said the Philippines continued to push for stronger bilateral business and economic relations with China.
“The Trade Department is committed to aggressively promote increased business with China. This is an important opportunity for promoting investments and partnerships in line with our Inclusive, Innovative Industrial Strategy or i3s. Furthermore, this will increase capacities of our manufacturing base to serve the growing domestic demand, promote import substitution, and to export more”•not only to China”•but also to other markets,” said Lopez.
“Greater trade and investment engagements between our two nations will surely help us to create the needed opportunities for our countrymen so that they can attain a better life,” he said.
China is the Philippines’ largest trading partner, the third-largest export market and the top import supplier.
The countries’ bilateral merchandise trade reached $30.8 billion in 2018.
Philippine exports to China grew by 10 percent year-on-year from $6.2 billion in 2015 to $8.8 billion in 2018 and by 7.7 percent yoy to $4.6 billion from January to June this year.
Lopez said he remained positive about the relationship of the two countries under President Rodrigo Duterte’s administration.
Bilateral ties with China are at a high level and have been opening many business opportunities between two nations, he said.
The Philippine business delegation included members of the Philippine Chamber of Commerce and Industry and Silk Road Chamber led by Ambassador Francis Chua, the Federation of Filipino-Chinese Chambers of Commerce and Industry led by president Henry Lim Bon Liong and Philippine Overseas Construction Board led by DMCI Holdings Inc. chairman Isidro Consunji.