CHINA emerged as the Philippines’ largest trading partner, largest import source, and largest export market in the first half of this year.
Data from the Philippine Statistics Authority showed exports to China comprised the highest export value amounting to US$ 5.58 billion or a share of 16 percent of the country’s total exports in the first semester of 2023.
The US with $5.22 billion came second followed by Japan ($5.19 billion), Hong Kong ($3.84 billion), and Singapore ($1.87 billion).
Exports to Asia Pacific Economic Cooperation (APEC) member countries in particular amounted to $29.04 billion or 83.1 percent of the total exports in the first semester of 2023. China recorded the highest exports at $5.58 billion or 16 percent of the country’s total exports to APEC member countries.
The top five exported goods to APEC were electronic products, ($15.99 billion); other mineral products ($1.57 billion); other manufactured goods ($1.55 billion); ignition wiring sets and other wiring sets used in vehicles ($1.31 billion); and machinery and transport equipment ($1.03 billion).
China was also the country’s largest supplier of imported goods valued at $14.10 billion or 22.4 percent of the country’s total imports in the first semester of 2023.
Completing the top five major import trading partners for this semester were Indonesia ($5.97 billion); Japan ($5.20 billion); Korea ($4.30 billion); and the USA ($4.23 billion).
Import payments from APEC member countries amounted to $53.48 billion or 85 percent of the total imports in the first half. China registered the highest import value among APEC member countries, which amounted to $14.10 billion or 26.4 percent of the country’s total imports from APEC member countries.
The top five imported goods from APEC countries were—electronic products ($12.39 billion); mineral fuels, lubricants, and related materials ($7.85 billion); transport equipment ($5.23 billion); industrial machinery and equipment ($2.53 billion); and iron and steel ($2.36 billion).
More economic cooperation
Consul General Zhang Zhen of the Chinese Consulate in Cebu said the Philippines has long been an important trading partner of China.
According to the data of the Philippines Statistics Authority, from 2016 to 2022, the cumulative agreed investment of China to the Philippines is the third largest source of foreign investment in the Philippines.
Data from the Bangko Sentral ng Pilipinas showed that firms from China and Hong Kong invested US$1.7 billion in the Philippines between 2016 and 2022, trailing only Japan at $2.8 billion but ahead of the USA ($1.3 billion), South Korea ($1.1 billion), and Taiwan ($580 million).
Zhen said China wants to improve ties with Cebu and explore more areas of economic cooperation in the post-coronavirus pandemic era.
She made the commitment during the 74th Anniversary of the Founding of The People’s Republic of China on Tuesday, Sept. 26, 2023, at the Marco Polo Plaza Cebu which was attended by the Chinese community in Cebu, diplomats, businessmen, and officials from the local government units of Cebu and Bohol.
“In the post-pandemic era, China will continue to uphold the policy of forging friendships and partnerships with our neighbors based on the principles of amity, sincerity, mutual benefit, and inclusiveness. Our door is wide open to anyone who wants to engage in cooperation with us,” said Zhen.
Against a backdrop of a struggling world economic recovery and a challenging external environment, China’s gross domestic product grew by 5.5 percent year-on-year in the first half of this year.
The consular district of China’s Consulate General in Cebu covers 12 provinces in the Central Visayas, Eastern Visayas, and Western Visayas.
According to Zhen during the past decades, more Chinese students and tourists have come to Cebu, and Chinese companies are also actively engaged in building the infrastructure, green energy, and digitization in these areas.
“My colleagues and I are ready to work with all the friends, with those of vision from all walks of life, to further strengthen bilateral relationships on different levels, to further enhance mutual understanding, to further expand exchanges and win-win cooperation between different cities, provinces of the two countries, bringing more tangible benefits to both peoples,” she said.
Important ally
Cebu Gov. Gwendolyn Garcia noted that Cebu province has long regarded China as an important ally and friend in international trade and investment.
In fact, she said Cebu has forged sisterhood agreements with the Chinese provinces of Guangdong, Guangxi Zhuang, Sichuan, Hainan, and Fujian.
Last Tuesday, the Cebu Province signed an agreement with sister province Fujian represented by Governor Zhao Long, for the joint promotion of the 21st Century Maritime Silk Road which seeks to deepen practical cooperation in the fields of agriculture, infrastructure, and tourism, strengthen trade connectivity and enhance people to people exchanges between provinces.
Mandaue City Mayor Jonas Cortes, on the other hand, said the City values the connection it has forged with China over the years.
“Our cities are engaged in meaningful exchanges in trade, culture, and education that benefit both communities,” he said. “As we mark this anniversary, let us recommit ourselves to strengthening these ties and exploring new avenues for cooperation.”
Besides trade, China also emerged as Cebu’s top tourist source market alongside Korea and Japan prior to the pandemic.
In 2019, some 762,583 Chinese tourists visited Central Visayas. Last year, the region logged 53,539 Chinese tourists, 50,036 of whom visited Cebu.