The country’s economic managers seek to deepen the Philippines’ economic ties with China despite ongoing geopolitical tensions between the two nations, according to Department of Finance Secretary Frederick Go.

“As far as the economic team is concerned, we really want to deepen our economic trade and investment partnership with China,” he said in a Monday morning television interview.

“China is our most important trading partner. They’re number one for imports and they’re number four for exports for the country, so they are a very important partner,” he added.

China remains the Philippines’ largest trading partner, with trade 2.5 times that of its next-largest trading partner, Japan. In 2025, bilateral merchandise trade reached $47.75 billion, with the Philippines exporting $9.31 billion worth of goods and importing $38.44 billion, resulting in a $29.13 billion trade deficit. China accounted for 28.6 percent of Philippine imports and 11 percent of exports, making it the country’s largest import source and fourth-largest export market.

Go said the Philippines’ ties with China extend beyond trade, including investments in infrastructure and renewable energy.

“Beyond investments in trade, a lot of our large infrastructure projects, for example, use Chinese technology, use Chinese technical expertise, [such as] the suppliers and contractors for these big-ticket infrastructure projects. For example, we have a $4 billion solar farm, a four gigawatt solar farm with [a] battery energy storage system,” Go added.

However, the bilateral relationship between the two nations has been tested by disputes over territory and allegations of racism from the Chinese state in recent months.

Over the past few months, Philippines-China tensions have intensified, with repeated confrontations in the South China Sea. Chinese and Philippine vessels clashed near Second Thomas Shoal in July, injuring a Filipino sailor, while Chinese coast guard ships used water cannons against Philippine vessels near Scarborough Shoal.

China also sanctioned Defense Secretary Gilberto Teodoro in June, banning him and his family from entering China and prohibiting Chinese entities from transacting with them. China accused Teodoro of making irresponsible remarks that undermined Chinese interests and damaged China-Philippines relations.

The Philippine government described the measure as an “unfriendly act” that further complicated bilateral relations.

The tensions also spilled into information warfare after state-owned news outlet China Daily published an AI-generated video portraying Filipinos as monkeys, which Manila condemned as racist and dehumanizing. China also once again rejected the landmark 2016 arbitral ruling on the West Philippine Sea. Chinese scholars also claimed that the province of Batanes falls under Chinese sovereignty, which the Department of Foreign Affairs likewise condemned.

Despite flaring maritime tensions, the Philippine government has maintained its willingness to do business with the Chinese state. President Ferdinand R. Marcos Jr. said in August that joint oil and gas exploration with China was a “distinct possibility.”

“I don't think that's in any policy, in any policy statement, that we are distancing ourselves from China,” he said.

“We are continuing to find many, many instances where we are very much in cooperation with China. China is one of the biggest investors still in the Philippines.”