Defense Secretary Delfin Lorenzana announced on Sunday that the Chinese Government had offered a $500-million defense loan to the Philippines.
The announcement was made during the Belt and Road Forum in Beijing and after representatives from the Chinese arms manufacturer, Poly Technologies Inc had paid a courtesy call to President Rodrigo Duterte in Beijing.
Lorenzana clarified that the Philippine Government will not purchase anything from the Chinese, however, if there is something that the country would need from the Chinese defense industry, the country will use the loan that was offered by the Chinese government.
He also stated that the loan will remain on standby and will only intended for the modernization of the military.
The Philippines is expected to sign a letter of intent to deal with the Chinese arms company.
It has also been announced that the Army, Navy and Air Force will be involved in selecting equipment to be offered by the Chinese manufacturer.