Fitch unit sees downside to warmer PH-China tiesBy The Manila Timeshome/Business/Top Business/Fitch unit sees downside to warmer PH-China ties‘Pivot toward Beijing … poses downside risks to growth sustainability’Renewed relations between the Philippines and China — a result of President Rodrigo Duterte pivot to Beijing at the expense of Washington — will likely grow warmer but comes with some disadvantages, a Fitch Group unit said. “We at Fitch Solutions expect bilateral ties and economic cooperation between China and the Philippines to deepen further over the coming years,” the Fitch unit said in a political risk analysis. “The selection of China Telecom, which follows the almost immediate disqualification of the two other bidders, hints at the government’s bias towards Chineseinvolvement in the telecoms sector, and is a clear sign of Duterte’s warming posture towards China,” Fitch Solutions said. “The Mislatel consortium enters the Philippines telecoms sector with few existing assets excluding Mindanao Telecom’s limited local access network infrastructure. Mislatel’s entry will change competitive dynamics in the domestic telecommunications sector, Fitch Solutions said, pointing out that it would have to offer very competitive rates to grab market share.

Source: Manila Times November 22, 2018 16:23 UTC