BEIJING (VIA PLDT) -- DESPITE THE corruption scandal that scuttled the $329-million National Broadband Network deal between China and the Philippines less than a year ago, President Macapagal-Arroyo said Saturday that the ties between the two countries were stronger than ever.

“Today, Philippine-China relations are at an all-time high,” Ms Arroyo told athletes and members of Beijing’s Filipino community at a luncheon she hosted at Asia Hotel here.

Earlier in the day, Ms Arroyo met with Chinese President Hu Jintao at the Great Hall of the People for bilateral talks.

Speaker Prospero Nograles, who was among the officials who joined Ms Arroyo at the 30-minute meeting, said the NBN controversy and the NorthRail project were not discussed but that the talks dealt mostly with “economic cooperation.”

“It was never brought up. Things that will not help in the relationship … Anyway we said we don’t want any of our relations to be affected by any of these things in general. Our relations must remain strong,” Nograles said.

Trade and Industry Secretary Peter Favila said the discussions would bring a new dimension to the country’s relations with China, because the two countries would work together on “new fronts.”

“In effect, what President Hu Jintao was saying, we should bring our relations to a higher level of cooperation and bring about continuing peace and prosperity between the two nations,” Favila told reporters.

Nograles said the Philippines also explained to China why it had not signed the Joint Marine Seismic Understanding(JMSU), which is an agreement among China, the Philippines and Vietnam to explore for oil in the spratlys.

He said the government explained it had not signed it because the deal was questioned by militants before the Supreme Court.

“We told them we have to wait,” he said.

He said the Chinese officials said they understood.

“They understand that we have to go through a process. We have to follow the Constitution … The thing is to follow it up so that it can be resolved sooner,” he said.

He also said the Philippines invited 100 Chinese children who were victims of the recent earthquake in Sichuan province to visit the Philippines on an educational trip.

Favila, meanwhile, yesterday told reporters that his Chinese counterpart, Chen Deming, informed him of the Chinese government’s plan to resume the NorthRail project.

“He reiterated the commitment of the Chinese government to see through the completion of the NorthRail project. He asked me to convey this to the President. The officials of the designated contractors were there. I told him that we will leave it at the implementing level to meet immediately and thresh out whatever issues there are that need to be straightened out,” he told reporters.

The NorthRail project stalled after the Chinese contractors withdrew as a result of disagreements in engineering and construction standards.

Favila also said he and his Chinese counterpart agreed to revive the joint economic framework agreement, which the two countries entered into in 2005 or 2006 but which was not followed up.

He said the working groups of the two countries would sit down again to discuss how to promote robust economic relations between the two countries.

China is now the Philippines’ number one export market.

He said under then Minister Bo Xilai, a five-year road map was crafted on how to expand the trade between the two countries. But because of changes in the Chinese government and China’s preparations for the Olympics, the agreement did not bear fruit.

The other Filipino officials present at the bilateral talks were Foreign Secretary Alberto Romulo, Agriculture Secretary Arthur Yap, Ambassador to China Sonia Brady and Dangerous Drugs Board chief Vicente Sotto III.

During her remarks at the luncheon for the athletes and the Filipino community, Ms Arroyo told the crowd about sharing a table with Hu and meeting him for bilateral talks, reportedly one of only two he scheduled with the leaders who came to attend the Olympics. The other was Timor Leste leader Jose Ramos Horta.

At the start of the talks, Hu thanked the Philippine president for the assistance the Philippines gave to the victims of the May earthquake that rocked China and left thousands dead.

For her part, Ms Arroyo thanked Hu for seating her at his table during the welcome luncheon and congratulated him for the awe-inspiring opening ceremony for the 2008 Olympics.

“Let me thank you and congratulate you for bringing about the world’s most memorable Olympics. The goal and objectives that were set seven years ago when China was chosen to host the 2008 Olympics are being realized. It is an honor to be able to witness first-hand the memorable and wonderful preparations China has made and the spectacular facilities and exciting games that are connected with Olympic events,” she said.