China-Phl trade unstirred by WPS tension, BoI says

Trade relations between China and the Philippines remain strong and unaffected despite the ongoing tension in the West Philippine Sea, a ranking official of the Board of Investments, an attached agency of the Department of Trade and Industry, has asserted.

"Let us just say that, at least, on the economic trade and investment side, the fundamentals of each other's position in terms of global value chains and complementation of our comparative advantages are very strong, which leads to a strong interest in terms of investments and trade.

"We intend to fully maximize all these opportunities," said Undersecretary Ceferino Rodolfo, BoI managing head.

He added: "On the DTI side, all we need to do is to strengthen our economic partnerships and relationships. We look at it from the perspective of being able to bring in investments."

DTI figures showed that in 2022, China ranks as the Philippines' top trading partner, with total trade between the two countries up 2.32 percent to $39.14 billion from $38.25 billion in 2021.

Pushing durian

Rodolfo said the recent China-ASEAN Expo or CAEXPO 2023 held in Nanning, China was a success, as Filipino micro, small, and medium enterprises or MSMEs reaped revenues from Chinese customers and received bulk orders from Chinese traders, particularly for durian.

"There is a warm reception when it comes to our durian. Chinese customers love our durian compared to that of other countries because ours is creamy and sweeter," he added.

But durian sellers are facing a supply issue, as Filipino exporters need help to meet the requirements, Rodolfo said.

"We need government intervention in this because right now, the export deal with China does not allow frozen and packed durian. Only fresh durian enters through Nanning. Our capacity to serve the requirement right now is very limited, although there is a tremendous potential for durian," Rodolfo told reporters.

Rodolfo said the Philippines is the number-one exporter of bananas to China, while for durian, the country ranks third, behind Thailand and Vietnam.

The Philippines began exporting fresh durian to China in April 2023, immediately after the approval of the export permit following the state visit of President Ferdinand Marcos Jr. in January. That visit resulted in the signing of a $2-billion deal to step up imports of high-value agricultural products from the Philippines.

Returning to the CAEXPO, Rodolfo said total sales were $8,680,609.69 (P495 million) from 15 exhibitors.

Aside from durian, other products sold at the CAEXPO were banana chips, calamansi juice drinks, and cream.

CAEXPO has diligently bolstered the China-ASEAN Free Trade Area, furthering cooperation in trade, investment, tourism, and diplomatic relations between ASEAN and China.