Joma wary Chinese loans might trap PH to give up West PH Sea

From Rappler (May 15): Joma wary Chinese loans might trap PH to give up West PH Sea

Communist leader Jose Maria Sison raises 8 questions regarding President Rodrigo Duterte's plans to heavily borrow from China amid a warning it could turn the Philippines' into a debt slave of the Asian economic giant



TEACHER AND STUDENT. Communist Party of the Philippines founder Jose Maria Sison was President Rodrigo Duterte's teacher at the Lyceum of the Philippines University

Communist leader Jose Maria Sison is concerned that President Rodrigo Duterte's plans to heavily borrow from China to finance his ambitious infrastructure-building could turn the Philippines into a "debt slave" of the Asian economic power.

Sison asked how "reliable" the Filipino-Chinese and Chinese businessmen close to Duterte are, wondering if in the long term China would force the Philippines to give up its claim on the West Philippine Sea (South China Sea).

These are among the 8 questions Sison raised on the Chinese loans amid a warning from an analyst of Forbes magazine that plans to borrow up to $167 billion (P3.3 billion*), based on pronouncements by Budget Secretary Benjamin Diokno, could balloon to $452 billion (P9 billion*) and bring the country's debt-to-GDP ratio to second worst in the world.

"Dutertenomics, fueled by expensive loans from China, will put the Philippines into virtual debt bondage if allowed to proceed," the article read.

8 questions on the loans

Sison sent Rappler his comment to the article Sunday night, May 14. The questions included his concern that the direction of Duterte's spending plans will "draw resources away" from their proposals in the peace table.

1. Can the Philippines really borrow the huge amount of USD 167 B from China at so fast a rate?

2. Will not the Philippines become a debt slave of China?

3. Will not the drive to build, build, build infrastructure (rails, roads, and bridges) draw resources away from a program of national industrialization proposed by the NDFP in the negotiation of CASER?

4. At a certain point, will not China demand that the Philippines give up its EEZ (exclusive economic zone) and ECS (extended continental shelf) in the West Philippine Sea or else the loans will be called or cut off?

5. Will not China further nail down the Philippines to the status of an underdeveloped country providing raw materials to China, consuming manufactures from China and ever begging for new loans to cover the trade deficit?

6. Does not the Philippines have already bad experience in making deals with China, such as the overpriced NBN-ZTE and NRT scams during the Arroyo regime and the 3 B wasted on defective trains from China during BS Aquino regime?

7. How reliable or unreliable are those Filipino Chinese and Chinese businessmen that are close to Duterte?

8. How does Duterte's expectation of USD 167 B compare with actual outcomes of China's big loans to certain countries like Venezuela, Sri Lanka, etc.

Sison is the founder of the Communist Party of the Philippines (CPP) that is talking peace with the Duterte government.

Under the proposed Comprehensive Agreement on Socio-Economic Reforms (CASER), the communist rebels are pushing the government to spend on national industrialization and agrarian reform.

The two sides are holding the 5th round of talks later in the month.

http://www.rappler.com/nation/169845-chinese-loans-debt-slave-sison-duterte