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China-Philippines tensions roil South China Sea, but it’s ‘business as usual’ for bilateral trade

  • As maritime disputes flare, relations between the Philippines and China are at subterranean lows – but bilateral trade has continued
  • Trade officials remain optimistic about future prospects especially in minerals, where China’s new energy boom has exploded demand

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Popular food brand Oishi is putting its products on display at the Philippines exhibition area during the 2023 China International Import Expo. Photo: Frank Chen
Frank Chenin Shanghai

The Philippines has pinned its hopes on exports of nickel and other critical minerals to capitalise on China’s new energy bonanza and generate more revenue, and officials have made “business as usual” their mantra despite ongoing tensions in the South China Sea.

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At the China International Import Expo (CIIE) in Shanghai this week, diplomats and trade representatives from Manila are redoubling their efforts to make trade with China more balanced, showing off a variety of Philippine exports from coconut to copper.

The Philippines, already a major nickel ore supplier to China, has more than 30 mines in operation. That infrastructure will go far in China, as domestic production struggles to meet ravenous demand.

Of the 5.96 million tonnes of nickel ore China imported in September, 5.52 million originated from the Philippines, according to China’s General Administration of Customs.

The Philippines exhibition area at the 2023 China International Import Expo. Photo: Frank Chen
The Philippines exhibition area at the 2023 China International Import Expo. Photo: Frank Chen

“We have seen a sharper focus on minerals,” said Glenn Penaranda, commercial counsellor at the Philippine consulate in Shanghai.

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