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The Philippines has confirmed it has given up on Chinese funding for three major transportation projects amid the already strained ties between the neighbors, but Manila is confident it can secure financial backing elsewhere, including from U.S. and Japan-dominated institutions.
The announcement came just weeks after Beijing hosted the third Belt and Road Initiative forum with much fanfare. China has touted the 10-year-old, trillion-dollar international infrastructure program as a modern-day form of the Silk and Maritime Silk Road trade networks that connected ancient China with far-flung regions.
China will not be providing financial assistance on three big-ticket railway projects—a 44-mile freight railway and two intercity rail lines—because of apparent Chinese disinterest, the Philippines' Department of Transportation cited Secretary of Transportation Jaime Bautista as saying last week.
China's Ministry of Foreign Affairs did not immediately respond to Newsweek's request for comment.
Philippine transportation authorities cited Bautista as saying that he was optimistic the Southeast Asian country could secure the funding from another source, such as the U.S.-dominated World Bank; Japan Cooperation Agency; or Asian Development Bank, in which the U.S. and Japan hold the most shares.
On Monday the Philippines' transport chief said at a press conference that Japan, India and South Korea have each already offered to provide financing for the three rail lines.
Japan is a major financier of Philippine public transportation, having already committed over $6.5 billion toward the construction of the country's first subway system, due to open in 2029, as well as extensions to the rapid rail and light rail systems in the Philippine capital.
On Friday, Japanese Prime Minister Kishida Fumio embarked on a two-day trip to the Philippines to bolster bilateral defense ties. The Philippines is the first beneficiary of Japan's new Official Security Assistance program for like-minded allies. Kishida has pledged a $4 million coastal radar system and five new coast guard patrol boats to the country.
Philippine President Ferdinand Marcos Jr.'s administration had in July ordered the trio of big ticket projects to be renegotiated since China had yet to provide a list of contractors.
The initial agreement with China was obtained by Marcos' predecessor former President Rodrigo Duterte, under whom the Philippines enjoyed cozier ties with Beijing. However, this relationship has soured as Marcos pushes back against incursions by China's coast guard and fishing fleet into traditional Philippine fishing grounds and alleged aggression by Chinese maritime forces, such as a recent collision in the disputed Spratly Islands.
The announcement comes amid some countries' waning interest in China's signature economic initiative following accusations of "debt-trap diplomacy" and results that failed to live up to expectations.
Italian Prime Minister Giorgia Meloni in September said Italy was considering exiting the initiative because of a persisting trade imbalance with China.
The Philippine president was notably absent from the Belt and Road forum in October, which saw the attendance of only 23 heads of state versus 37 at the previous forum in 2017.
About the writer
Micah McCartney is a reporter for Newsweek based in Taipei, Taiwan. He covers U.S.-China relations, East Asian and Southeast Asian ... Read more