Despite the ongoing dispute over vast swaths of the West Philippine Sea, trade and investments between China and the Philippines continue to flourish, according to the National Economic and Development Authority (Neda).
Neda Director General and Socioeconomic Planning Secretary Arsenio M. Balisacan Thursday said in a statement that there was a “mutual desire for stronger economic ties” between the Philippines and China, as well as “commitment towards regional peace and stability,” even as the two countries wrestle for control over territory west of the Philippines—said to be abundant with oil and marine life.
The Philippines had already called the attention of the United Nations to its territorial claim.
Nonetheless, Balisacan maintained that “the Philippine government values enhancing mutual trust and bolstering economic cooperation in our development policy” with China.
“Through the years, we have seen increased economic and sociocultural cooperation, frequent high-level exchange of visits, and conclusion of various bilateral agreements between the Philippines and China,” he said.
In terms of trade, the Neda chief noted a “tremendous” increase in the last four years.
“The Philippines and China’s total bilateral trade for the first seven months of 2014 increased by 19 percent to $10.3 billion, from $8.6 billion in the same period in 2013. This made China the Philippines’ second largest trading partner after Japan,” he said.
China was also the Philippines’ biggest source of imports as of end-July, with $5.5 billion worth of products—about 20 percent higher year-on-year, Balisacan pointed out.
As for investments, foreign direct investments (FDI) between China and Philippines remained “small,” he said.
Chinese investments in the Philippines declined by over a third to P1.24 billion last year, while Philippine investments in China totaled a mere $132.2 million in 2012.
But according to Balisacan, two-way investments are also on the rise. For instance, he said, approved investments from China climbed to P9.62 billion in the first half of the year, from just P245.6 million in the same six-month period of 2013, as more Chinese firms invested in the Philippines’ manufacturing, administrative and support services, as well as information and communications sectors.
Also, China became the fourth country to send the most number of visitors to the Philippines.
In 2013, arrivals from mainland China grew by 69.9 percent compared to the 2012 tally, the Neda chief said.
Balisacan then urged both Filipino and Chinese investors to further strengthen economic ties.
“I encourage [Chinese businessmen] to keep up your confidence in the Philippine economy as we are now on a higher growth path…. Market opportunities abound for both Filipino and Chinese investors. I call on you to check these out and continue to nurture the existing business relations towards realizing prosperity for the benefit of our people,” Balisacan said.