China hopes to improve trade relations with RP

China is hoping to further correct its trade imbalance with the Philippines by promoting and selling more of its goods to Philippine buyers.

A delegation of the Chinese Export Commodities Fair, led by Chen Barong, is in the country specifically to drum up interest and invite Philippine buyers to the forthcoming CECF in October this year to be held in Guanzhou, China.

According to Chen, bilateral trade between China and the Philippines in the first half of this year reached $10.32 billion, 33 percent higher than the first half of 2005.

Trade between the Philippines and China, Chen said, had increased 31.7 percent to $17.56 billion in 2005 from 2004, although still in favor of the Philippines.

Chinese exports to the Philippines in 2005, Chen disclosed, amounted to only $4.7 billion as compared to imports from the Philippines which amounted to $12.7 billion.

Most of China’s exports to the Philippines, Chen said, are consumables.

However, Chen noted that bilateral trade between the two countries has been increasing, with a "healthy" correction of the imbalance.

For the first time in 2004, Chen said, bilateral trade between China and the Philippines exceeded $10 billion.

China, however, Chen admitted, is seeing a favorable development in trade with the Philippines as Chinese exports increase and imports from the Philippines have slowed down.

In fact, Chen said, while the number of Philippine buyers in the annual CECF has not exceeded 2,500 participants, the amount of goods they have purchased have increased 24 percent to $170 million in the most recent CECF held in April this year.

Most of the goods bought by Philippine buyers are electrical and mechanicals products and consumables.

The CECF, Chen explained, is the second biggest trade fair in terms of exhibit space, second only to the Hannover trade fair in Germany.

The CECF is held twice yearly and has been held annually since 1957.