In Duterte's Davao, China vice premier prioritises deals over disputes

MANILA, March 17 (Reuters) - Chinese Vice Premier Wang Yang met Philippine President Rodrigo Duterte's in his home city on Friday, becoming the most high-profile visitor from Beijing since two countries long at odds sought to chart a new course in relations.

Wang went to Davao City, where Duterte was mayor for 22 years before he became president in 2016 and sought a dramatic change in approach towards China at the height of a row over South China Sea sovereignty and amid the fallout of a bitter legal dispute that went to international arbitration.

The vice premier signed a six-year development programme to work together on trade and investment, part of Duterte's strategy to engage China as a buyer of Philippine farm and fisheries produce and a builder and financier of its much-needed infrastructure.

"Wang Yang noted the need to focus on common interests that bring more benefits than differences," presidential spokesman Ernesto Abella said after the closed-door meeting between Duterte and Wang.

"The president said bilateral ties are found stronger, particularly in trade and commerce, and reaffirmed the importance of peaceful settlement of disputes."

The relationship has for years been characterised by disputes, with the Philippines repeatedly opposing China's island-building in parts of its exclusive economic zone and its repelling of fishermen from the disputed Scarborough Shoal.

Though Duterte has persuaded China to end the blockade and let fishermen operate around the shoal, China has continued to fortify some of its artificial islands with military hardware.

It was unclear, however, if Wang and Duterte discussed China's decision to start preparatory work this year for an environmental monitoring station on Scarborough Shoal.

The Philippines has recently said it was assured China would not carry out any building work there.

The six-year business deal covers loans, support with feasibility studies, grants for bridge construction, a proposed Philippines-China industrial park, dams, railways and agribusiness training.

China last week committed to finance at least three Philippine infrastructure projects worth $3.4 billion, two of which could be rolled out in the first half of this year. .

Wang's visit to Davao comes two months after that of Japanese Prime Minister Shinzo Abe, who was the first foreign leader to visit the Philippines under Duterte, signalling Tokyo's intent to bolster its influence amid a changing geopolitical landscape.

Abe brought with him a 1 trillion yen ($8.77 billion) aid package.

Wang's trip was more businesslike than that of Abe, who has a close personal bond with the firebrand Philippine leader and had breakfast in his humble Davao home.