China’s Loan Agreements With Philippines Skewed In Beijing’s Favor, Contracts Show

China’s Loan Agreements With Philippines Skewed In Beijing’s Favor, Contracts Show

The Philippines is one of few Southeast Asian countries to make such agreements public, analysts say.

Andrew H. Sweet

Two Chinese debt contracts with the Philippines contain dispute arbitration and asset seizure clauses that unduly favor Beijing, according to analysts, and loan agreements recently digitized and published by a U.S. think-tank, Center for Global Development.

Clauses in the two contracts give China power over the settlement of disputes. Further, disputes are to be arbitrated by the Beijing-based China International Economic and Trade Arbitration Commission (CEITEC).

Agreements to fund the 12.2 billion pesos (U.S. $255 million) Kaliwa Dam and 4.3 billion pesos ($90 million) Chico River Pump Irrigation Project were two of 100 Chinese debt contracts published and analyzed by the authors of "How China Lends."

The Philippine contracts were the only ones from Southeast Asia included in the research.

One of the report's authors said the data likely points to similar concerning clauses in Indonesian, Cambodian, Malaysian, or Laotian deals.

Read the original story here.

Comments

Sign in or become a tippinsights member to join the conversation.
Just enter your email below to get a log in link.