President Duterte warned about threat of “Chinese debt traps”

PHILIPPINES — President Rodrigo Duterte threatened Senate minority leader Franklin Drilon for urging him to be careful in reviewing all government contracts and loan agreements.

Drilon, while in favor of Duterte’s proposed contract reviews – warned that some contracts are binding and canceling them just because they’re deemed onerous unilaterally – is a breach or non-payment of contract.

Consequences, such as losing Philippine properties as collaterals.

Malaysian President Mahathir Mohamad, in a recent visit to the Philippines, warned Duterte about the dangers of Chinese debt traps.

Mahatir’s sentiments were echoed in a 2018 New York Times report that a number of countries have fallen into the Chinese debt trap such as Sri Lanka – not only losing strategic ports as collateral from defaulted Chinese debts, but repaying Beijing by being forced to hire Chinese companies and thousands of Chinese workers as strings attached to the high-interest loans.

Even Philippine Supreme Court justice Antonio Carpio warned Duterte that China could seize natural gas deposits in Recto Bank, if the country fails to pay the $62 million Chinese loan for the Chico River irrigation project.

Carpio warned the same thing could happen to the kaliwa dam loan agreement with China.

New York economist Norman Madrid says – Philippine officials should take a deeper look into the collaterals buried in the loan.

Meanwhile, at a recent town hall at the Philippine consulate in New York – visiting Philippine economic secretary Ernesto Pernia says – everything is under control under Duterte.

Concerned Filipinos are thankful there is now heightened awareness regarding the Chinese loans – and what China can take away from the Philippines as collaterals.

The key now is for all sectors to remain vigilant to ultimately protect what is truly our own.

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  • Mario
    6 April 2019 at 12:23 am - Reply

    That is true, Chinese debt Traps on African counties on the rise, the PH Gov’t should be very careful on all their loan contract. The latest news is a Chinese historian said BANAUE RICE TERRACES was designed, an innovation by a Chinese, long,years back. Watch out they can produce a Chinese old Map, that Banaue was a Chinese settlement/territory. For record, our historian should object/contest to this issue while it is still early. US Corp made China a Superpower, there are 6,000 US Corp in China. Many are moving OUT, mostly to Vietnam, India, Thailand and Indonesia.The PH lack of public relation are missing this big opportunity,PH have free trade zone areas, we speak English better than our neighboring countries.I think it is only Duterte visit to WH can help and convince the US corp to built their manufacturing plant in the PH.

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