I. Political Relations
Since the establishment of Sino-Philippine diplomatic relations on June 9, 1975, the bilateral relations have by and large seen smooth development. The Chinese leaders who have visited the Philippines are as follows: Premier Li Peng (in Dec. 1990), chairman of the Standing Committee of the NPC Qiao Shi (in 1993), President Jiang Zemin (in 1996), Vice-Chairman of the SC of the NPC Xei Fei (in 1998), and Premier Zhu Rongji (in 1999). Following are the Philippine leaders who have visited China: President Marcos (in 1975), President Aquino (in 1988), President Ramos (in 1993), Vice-President Estrada (in 1994), Senate Chairman Neptali A. Gonzales (in 1995), Senate Chairman Ernesto M. Maceda(in1997),Vice-President Arroyo (in 2000), President Estrada (in 2000), and President Arroyo (in 2001).
In January 2002, State Councilor cum Secretary-General of the State Council Wang Zhongyu visited the Philippines. In April, Chairman of the Philippine House of Representatives Jose de Venecia came to attend the 3rd annual meeting of the Peace Association of the Asian Parliaments. In September, Chairman Li Peng paid an official goodwill visit to the Philippines. In March, 2003, the first Philippine trade fair was held in Shanghai, Chairman of the Philippine House of Representatives Jose de Venecia came to Shanghai as head of his government delegation to participate in the activities concerned.
The two countries set up the mechanism for diplomatic consultation in 1986, and 13 rounds of diplomatic consultations have been held. Apart from its respective embassy established in the other country, China has opened its consulate-general in Cebu and the Philippines its consulates-general in Xiamen, Guanzhou, Hong Kong and Macao. In July 2002, the latter opened another consulate-general in Shanghai.
According to the instruction of President Arroyo, the date of the establishment of Sino-Philippine diplomatic relations was made the Day of Philippine-Chinese Friendship.
II. Economic/Trade Relations and Economic / Technological Cooperation
Recent years have seen sound growth of Economic and trade cooperation between China and the Philippines. Trade Agreement on Economic and Technological Cooperation, and Agreement on Avoidance of Double Taxation were signed respectively in 1975, 1992, 1993, and 1999. the economic and trade joint committee was set up in 1977, and 22nd meetings have been held.
In April 191\93, Philippine President Lamos ordered to call off the discriminatory measures against China's trade so that Sino-Philippine trade has got on a normal track of development and gained momentum for rapid growth. In 2001, the bilateral trade volume reached US$ 3.566 billion, up 13.5% from the previous year while in 2002, it rise to US$ 5.26 billion, up 47.6% from 2001, of which China's exports amounted to US$ 2.04 billion and its imports US$ 3.22 billion, up 26.1% and 65.4% respectively.
In 2002, the contractual value of the Philippine investment in China reached US$ 0.325 billion, and the actual investment US$ 0.186 billion. China contracted 21 projects in the Philippines with the contractual value reaching US$ 0.184 billion and actual turnover US$ 74 million. By the end of 2002, the Philippine contractual investment in China had totaled US$ 3.18 billion and its actual input US$ 1.425 billion. Capital Bank of the Philippines and Bank of China have opened its respective branch in Shanghai and Manila.
Over the recent years, agricultural cooperation between the two countries has witnessed rapid development, which is an important area for Sino-Philippine cooperation In 1999, the Agreement on Strengthening Cooperation in Agricultural and Related Areas was signed between the Chinese and Philippine Ministries of Agriculture, and in 2000 the related departments of the two countries signed a credit agreement, according to which China would provide the Philippines with a loan of US$ 100 million. In March 2003, the Sino-Philippine Agricultural Technology Center, built by China in the Philippines, was completed, and President Arroyo attended the completion ceremony. With its successful trial planting in the Philippines, China's fine hybrid rice has been growing over large areas in the country.
III. Exchanges and Cooperation in Other Areas
Contacts in the cultural, scientific, technological, legislative and tourist areas have been developing between the two countries. The Agreement on Scientific and technological Cooperation, Agreement on Cultural Cooperation, Civil Air Transport Agreement, Memorandum of Understanding on Sports, Memorandum of Understanding on Cooperation in Information Industry, Memorandum of Understanding on Cooperation in Fighting Cross-Border Crimes, Extradition Treaty, Agreement on Cooperation in Fighting Drug-Trafficking and Memorandum of Understanding on Tourism Cooperation were signed respectively in 1978, 979, 1979, 2001, 2001, 2001, 2001, 2001, and 2002.
There are 11 pairs of friendship provinces and cities formed between China and the Philippines: Hangzhou and Baguio, Guangzhou and Manila, Shanghai and 大 Manila, Xiamen and Cebu, Shenyang and Quezon, Fushun and Lipa, Hainan Province and Cebu Province, Sanya and Lapu-lapu, Zhibo and Banaue, Shangdong Province and Ilocos Norte and Shishi and Naga.
Recent years have seen growing contacts between the military establishments of China and the Philippines. In October 2000, Philippine Chief of Army Staff Angelo Reyes visited China. In April 2002, Defence Minister Angelo Reyes visited China. In June the same year, Commander of the Philippine Air Force Benjamin P. Defensor visited China and the Philippine naval fleet visited China for the first time. In September, Chi Haotian, Vice-Chairman of the Central Military Commission, State Councilor cum Defence Minister, visited the Philippines.
IV. Problems in Sino-Philippine Relations
China and the Philippines have differences over the ownership of some shoals of the Nansha Islands. After many rounds of talks since 1995 both sides have agreed to work for safeguarding peace and stability of the South Sea. They also agreed that according to the universally recognized principles of international law, including the UN Convention on Maritime Law passed in 1982, peaceful solution to this dispute should be found through friendly consultations and talks between them. In November 1996, President Jiang Zemin and President Ramos reached consensus on the concept " shelf dispute and work for Common development'' in relation to the problem of the South Sea. A mechanism for consultation has been established between the two countries to explore the possibilities for cooperation in the South Sea, which include setting up three working groups responsible for building confidence measures, fishery cooperation, and maritime environment protection respectively. In April 2001, both sides held the 3rd meeting of the working group responsible for confidence-measure building in Manila, undertook not to influence the development of Sino-Philippine relations with their bilateral dispute and agreed not to take any actions in this region which might complicate the trouble and let it get out of hand so as strengthen cooperation in the fishery, military and scientific research areas.
V. Important Bilateral Documents
In May 2000, Foreign Minister Tang Jiaxuan and Philippine Foreign Minister Domingo L. Siazon signed the Joint Statement on Bilateral Cooperation Framework in the 21st Century between the Governments of the People's Republic of China and Republic of the Philippines in Beijing.
(Source: www.fmprc.gov.cn)