RP-China Bilateral Agreements on Economic Loans under the Arroyo Administration: An Analysis

Abstract

The People's Republic of China and the Republic of the Philippines have established diplomatic ties on 9 June 1975 and both sides nurtured the relationship. China and Philippines has signed over 75 agreements covering general bilateral agreements. This study proves that China's foreign policy is driven by its internal economic goals to increase markets and production sites. While the Philippines perceive China as a solution to its own economic and political predicaments where China is offering huge amounts of soft loans with least conditionalities. The downside of Chinese loans is the weakening standards of efficiency, accountability and transparency. Seeing all these, the Philippines should pursue partnerships that will be truly and mutually beneficial economic ties.