MANILA - Malacañang on Tuesday admitted that a Chinese national has been serving as economic consultant for President Rodrigo Duterte, backtracking a month since denying the former's role.

Presidential Spokesperson Salvador Panelo said in a Palace briefing that Duterte consults Chinese Michael Yang once in a while.

“Michael Yang is just one of those advisers that the President consults on a particular matter. But he just receives one peso a year,” Panelo said in a Palace press briefing.

“[He is] one of the consultants of the President. He consults him every now and then.”

Asked if a foreigner could legally serve in such capacity, Panelo said: "Oh it’s allowed, if it’s only a consultant."

Panelo said Yang’s business knowledge and his connections in China made him an asset for the President.

The Duterte administration has been pursuing enhanced trade ties with China, setting aside Manila's disputes with Beijing over the South China Sea.

“He knows a lot of people in the Chinese government – and he knows the psychology of Chinese. On that aspect, the President needs people like him,” Panelo said.

Panelo, however, stressed that Yang, “[as an] economic adviser cannot create policy. It’s the President who creates policies.”

Panelo admitted Yang’s role in the government after documents showed that Malacañang had tapped the Chinese national as an "economic adviser to the President" from January 1, 2018 to June 30, 2018 and from July 1, 2018 to December 31, 2018.

Despite Duterte’s earlier denial of appointing Yang as economic adviser, photos posted online show that Yang enjoys access to the President.

Yang is seen in several photos during visits to the Palace, as well as in Duterte's visit to China in 2016.

The President earlier cleared him of involvement in the illegal drug trade.

He also said Yang has close ties with Chinese Ambassador to the Philippines Zhao Jianhua and was once part of the entourage of Chinese Premier Li Keqiang during his visit to Manila in November last year.

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