China drawing Philippines into debt trap ‘total nonsense’ — Chinese embassy

MANILA, Philippines — It is “meaningless” and “nonsense” to conclude that China is leading the Philippines to a debt trap through its loans, a Chinese embassy official said yesterday.

“Let us forget about this meaningless, nonsense. Let us focus on Build, Build, Build,” Jin Yuan, commercial counselor of the embassy, said in a speech at the China-Philippines Summit.

Jin said there were only two loan agreements between China and the Philippines under the Duterte administration. He maintained the two loan deals were approximately only $260 million – comparatively smaller than loans from other countries and account for less than one percent of total Philippine foreign borrowings.

“I cannot understand why this less than only one percent can cause debt trap for the Philippines. You see other Philippine borrowings from other countries (are) actually much more than China. So why could one percent become a debt trap?” Jin told reporters.

“That is why I think it is totally nonsense. What we only focus on is our actions, our contributions to the Build, Build, Build program,” he said.

Some quarters are warning the Duterte administration against recklessly contracting Chinese loans, especially those requiring the Philippines to offer its natural resources as collateral.

Even US Secretary of State Michael Pompeo had advised Foreign Secretary Teodoro Locsin Jr. to “read the fine print” in any loan contract with China.

At Malacañang, presidential spokesman Salvador Panelo said they’re not stopping militant lawmakers or anyone from challenging before the Supreme Court the loan agreement with China for the Chico River Pump Irrigation Project.

“The Palace always welcomes any move to question its action if they feel it’s not within the law,” Panelo said at his regular press briefing.

“If there is no order from the Supreme Court stopping it, then it’s a ‘go’,” he said.

Last Thursday, Anakpawis Rep. Ariel Casilao said his group is set to file on April 3 a declaratory relief petition with the Supreme Court to force the government to rescind the loan agreement. –With Christina Mendez, Jess Diaz, Mary Grace Padin