Philippine official ‘positive’ on trade with China despite political friction

Trade official says his country can still be a ‘platform’ for China trade, even as US President Donald Trump threatens transshipment tariffs

Reading Time:3 minutes

Chinese President Xi Jinping speaks with Ferdinand Marcos Jnr, president of the Philippines. Photo: Instagram

Published: 6:00pm, 23 Jan 2025Updated: 11:56am, 24 Jan 2025

A trade official from the Philippines has expressed openness to more cooperation with China even as the two countries appear perpetually at odds over a number of tense geopolitical issues – not least of which a heated sovereignty dispute in the South China Sea.

In contrast to some Southeast Asian countries – who are shying away from transit shipments of Chinese goods to the US for fear of retributive tariffs from its recently inaugurated president, Donald Trump – the Philippines remains amenable to Chinese investment in fields like electric vehicles (EVs), renewable energy, smart manufacturing, electronics and agriculture, said Glenn Penaranda, commercial counsellor at the Philippine consulate in Shanghai.

“The Philippines can be another location or platform for manufacturing for export to major markets such as the US and the EU,” he said in an email. “The return of the Trump administration is expected to accelerate the diversification of supply chains and markets.”

Chinese customs data shows a decline in bilateral trade between China and the Philippines in 2024, with combined exports and imports falling by 0.4 per cent to US$71.6 billion.

Although the decline has moderated compared to 2023 – when their trade fell by 16 per cent – the Philippines remains one of only two Southeast Asian countries, along with Myanmar, to see a decline in trade with China last year.

Record-breaking export and import figures were reported in 2024 between China and the Association of Southeast Asian Nations (Asean), a grouping of 10 countries in the region.