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Economy / China

Strengthening Philippine Ties

September 2007 | Risk Summary

As part of confidence-building measures to enhance defence and military relations, China is giving the Philippines around US$2mn worth of non-lethal military equipment to aid development projects in areas where Muslim and communist rebels operate. Beijing has donated around US$2.5mn worth of engineering equipment and transport vehicles to the Philippine military since 2004. Strengthening defence ties with China could generate some concern in the US, which has criticised Beijing over its massive build up of arms. However, Philippine President Gloria Macapagal Arroyo has been quick to play this down, stressing that Washington remains its main security

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