State Undersecretary for Political Affairs Victoria Nuland (Photo by GRIG C. MONTEGRANDE / Philippine Daily Inquirer)
MANILA, Philippines — The United States is working to strengthen economic relations with the Philippines, a senior US Department of State official stressed as she asked whether China’s “promises” in the past had actually generated jobs for Filipinos.
Speaking to reporters on Monday during her one-day visit to the Philippines, State Undersecretary for Political Affairs Victoria Nuland said US-Philippine economic ties had grown “richer and stronger than what most people realize’’ but that “(we) can and should do even more.”
Nuland said they hope to draw more US investments to the country particularly in the climate and energy sectors, both being priorities of the Biden administration.
New Edca sites
She also noted that the four additional military sites in the Philippines to which US forces would have access under the 2014 Enhanced Defense Cooperation Agreement (Edca) would not only help address security concerns in the region but also bring “economic opportunities, jobs” to their host communities.
“As we strengthen our ability to work together, there are contracts that come with that, and the vast majority of those are going to Philippine businesses,” she said.
Washington and Manila have historically maintained strong economic ties, with over $33 billion a year in bilateral trade and $100 million a year in US investments specifically in climate and energy.
‘Lots of promises’
But the 75-year alliance grew cold under former President Rodrigo Duterte, who was openly hostile to the United States while welcoming Chinese support for his ambitious “Build, Build, Build” infrastructure program.
Nuland noted: “We’ve seen a lot of promises from Beijing, but how many of those promises have actually been converted to jobs, to climate investments that bring benefit to the people?… That’s part of what we’re working on right now.”
Among the earliest gains claimed by the Duterte administration in making a pivot to China was reported in October 2016, when the government secured $24 billion in investment and credit line pledges from Beijing during Duterte’s state visit. The pledges were said to be good for two million jobs to be generated in the next five years.
In April 2019, when Duterte visited China for the fourth time as president, the government reported $12.16 billion investment and trade deals with Chinese partners for energy, petrochemical, industrial park and infrastructure projects. A total of 19 business agreements were signed and were projected to create some 21,000 new jobs.
In January 2021, Chinese Ambassador to the Philippines Huang Xilian said the Panhua Group, one of China’s top private enterprises, had invested $3.5 billion to build a steel plant intended to upgrade the country’s steel industry and create 10,000 direct jobs and 20,000 indirect jobs.
In January 2023, under President Ferdinand Marcos Jr., Malacañang said he secured $22.8-billion investment pledges during his three-day state visit to China, including $1.72 billion for agribusiness, $13.76 billion for renewable energy and $7.32 billion for strategic monitoring.