In Davao, China vice premier prioritises deals over disputes

Chinese Vice Premier Wang Yang met Philippine President Rodrigo Duterte’s in his home city yesterday, becoming the most high-profile visitor from Beijing since two countries long at odds sought to chart a new course in relations.Wang went to Davao City, where Duterte was mayor for 22 years before he became president in 2016 and sought a dramatic change in approach towards China at the height of a row over South China Sea sovereignty and amid the fallout of a bitter legal dispute that went to international arbitration.The vice premier signed a six-year development programme to work together on trade and investment, part of Duterte’s strategy to engage China as a buyer of Philippine farm and fisheries produce and a builder and financier of its much-needed infrastructure.“Wang Yang noted the need to focus on common interests that bring more benefits than differences,” presidential spokesman Ernesto Abella said after the closed-door meeting between Duterte and Wang.“The president said bilateral ties are found stronger, particularly in trade and commerce, and reaffirmed the importance of peaceful settlement of disputes.”The relationship has for years been characterised by disputes, with the Philippines repeatedly opposing China’s island-building in parts of its exclusive economic zone and its repelling of fishermen from the disputed Scarborough Shoal.Though Duterte has persuaded China to end the blockade and let fishermen operate around the shoal, China has continued to fortify some of its artificial islands with military hardware.It was unclear, however, if Wang and Duterte discussed China’s decision to start preparatory work this year for an environmental monitoring station on Scarborough Shoal.The Philippines has recently said it was assured China would not carry out any building work there.The six-year business deal covers loans, support with feasibility studies, grants for bridge construction, a proposed Philippines-China industrial park, dams, railways and agribusiness training.China last week committed to finance at least three Philippine infrastructure projects worth $3.4bn, two of which could be rolled out in the first half of this year.Wang’s visit to Davao comes two months after that of Japanese Prime Minister Shinzo Abe, who was the first foreign leader to visit the Philippines under Duterte, signalling Tokyo’s intent to bolster its influence amid a changing geopolitical landscape.Abe brought with him a 1tn yen ($8.77bn) aid package.Wang’s trip was more businesslike than that of Abe, who has a close personal bond with the firebrand Philippine leader and had breakfast in his humble Davao home.Duterte typically spends three days each week in Davao, or more.He is there visiting his newborn grandson, who is named “Stonefish”.Duterte was also visited yesterday by Australian Foreign Minister Julie Bishop, who announced a A$90mn ($69.2mn) programme to support education and policy development in Mindanao, an impoverished region.Mindanao has been plagued by decades of separatist rebellion and the Philippines is concerned it could become a hotbed of extremism if Islamic State gains a foothold.“Both underscored that terrorism and violent extremism are serious threats,” spokesman Abella said of their meeting.Beijing to build on disputed shoalChina will begin preparatory work this year for an environmental monitoring station on Scarborough Shoal in the South China Sea, an official said, as two US senators introduced a bill to impose sanctions on its activities in the disputed waterway.Last month, a Philippine minister said Chinese President Xi Jinping had promised his Philippine counterpart China would not build structures on the rocky outcrop both countries claim, but China called the comments “baffling and regrettable”. China seized the shoal, which is northeast of the Spratly islands, in 2012 and denied access to Philippine fishermen. But after President Rodrigo Duterte visited China last year, it allowed them to return to the traditional fishing area.This week, Xiao Jie, the mayor of what China calls Sansha City, said China planned to begin preparatory work this year to build environmental monitoring stations on a number of islands, including Scarborough Shoal.Sansha City is the name China has given to an administrative base for the South China Sea islands and reefs it controls.The monitoring stations, along with docks and other infrastructure, form part of island restoration and erosion prevention efforts planned for 2017, Xiao told the official Hainan Daily in an interview.A spokesman for the Philippine foreign ministry, Charles Jose, declined to comment, saying it was trying to verify the reports.