MANILA, Philippines - Despite increasing tension in the disputed waters, the Philippines will continue to work on preserving its trade and investment ties with China, the Department of Trade and Industry (DTI) said.
“We continue to pursue a tack of business-as-usual to China. And so far, they’ve also pursued similar tack on their side, We’re hoping that continues moving forward,†Trade Secretary Gregory Domingo said in a press briefing.
He noted that while there has been an ongoing dispute between the two countries, trade between them has not been largely affected.
In the same event, Trade Assistant Secretary Ceferino Rodolfo said the government does not expect the Chinese government to impose sanctions which may affect economic ties, citing that most goods traded by both countries are part of the larger global supply chain.
“We can see that we really have deep economic relationship such that any move on any side to initiate anything that will affect this will be to the detriment of the two parties. We’re very hopeful that our economic relationship and trade and investment will continue,†he said.
But while the government is hopeful trade and investment ties with China will remain the same despite the dispute, Philippine Exporters Confederation Inc. president Sergio Ortiz-Luis Jr. said Philippine exports to that country may be affected.
“At the moment, we see China as an opportunity lost,†he said.
He said the country’s exports to China could be growing much faster without the tension.
While exports to China may not grow as much, he added that exporters can look at other markets for their products.
Data from the Philippine Statistics Authority showed China was the second biggest destination of Philippine exports in 2013 with its 12.19- percent share valued at $6.583 billion, up from $6.169 billion in 2012.
In the same year, China was the top source of Philippine imports accounting for a 13.01-percent share amounting to $8.027 billion, also higher than the $6.680 billion in 2012.
Late last month, the Philippine government submitted its 4,000-page memorial or written argument to the United Nations (UN) arbitral tribunal hearing a case against China covering the latter’s excessive claims in the South China Sea.