Phl-China trade expands 32%

MANILA, Philippines - Trade between the Philippines and China grew by 32 percent in the first three quarters of 2011, showing robust bilateral economic relations despite weaknesses in the global economy, the Philippine embassy in Beijing reported to the Department of Foreign Affairs.

The embassy cited a report issued recently by the General Administration of China (GAC), showing that total trade between the two countries reached $26 billion in the first 10 months for the year, an increase of 31.69 percent from figures of the same period last year.

Charges d’Affaires Alex Chua said this is “an indication of the strength, resilience and potentials of the trade and economic ties between the two countries”.

“The momentum is positive and encouraging for both sides especially as both countries aim to meet the $60-billion trade goal by 2016, which was set jointly by President Aquino and Chinese President Hu Jintao in September during the president’s visit to China,” Chua added.

He cited the “embassy’s confidence that the current trends will be sustained under the Association of Southeast Asian Nations (ASEAN)-China Free Trade (ACFTA) regime”.

From January to October, Philippine exports to China reached $14.6 billion while Chinese exports to the Philippines topped $11.4 billion, expanding by 21 percent and 50 percent, respectively.

At present, trade between the two countries is dominated by electronic and electrical products, industrial parts, nickel/copper, liquefied petroleum gas, fertilizer and ceramics.

Chua said Philippine agricultural and agri-processed products, furniture, iron and steel and logistics-related goods have also been gaining headway in the Chinese market, but exporters are advised to continue to actively tap opportunities in the country which has fast-rising income and consumption levels and rapid urbanization rates.

He cited “the immense benefits that Philippine producers stand to gain from the free trade and economic agreements between ASEAN and China.”

Over the past few years, the ASEAN countries have become among China’s top trading partners, with ASEAN exports to China growing at astronomically-high rates. China is the Philippines’ third biggest trading partner.

Philippine-China trade reached its highest level in 2007, with $30.6 billion, before contracting in the next two years as a result of the global financial crisis.