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TRADE AND COMMERCE
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DEVELOPMENT OF PHILIPPINE AND
CHINA TRADE AND INVESTMENT RELATIONS
·
Historical
documents prove that the peoples of the Philippines and China have enjoyed
extensive economic ties as early as the 7th century.
·
21st
century, mutual trade and investments provide a solid pillar in the
long-standing, friendly relations between the two nations.
·
2000, bilateral trade volume grew at an annual average of 41.77 per cent,
with the Philippines gradually selling more to China than it buys from China
·
2005,
Chinese President Hu Jintao visited the Philippines, a trade volume of US$30
billion was targeted by 2010
· 2007,
Premier Wen Jiabao visited in early 2007 and President Gloria Macapagal
Arroyo made an unprecedented three visits to China, the exchange of
high-level visits has brought the Philippines closer to China
GOLDEN
AGE IN PHILIPPINE -CHINA RELATIONS
· China
is the Philippines’ 3rd top trading partner in 2006, moving up from 9th
place in 2002. China is the Philippines’ 4th largest export market and 5th
largest supplier of imports in 2006.
· Exports
of Philippine products to China have increased more than three-fold – from
RMB 11.6 billion in 2002 to RMB 36.7 billion in 2006, with an
average growth rate of 36.2%.
· Semiconductors
are the Philippines’ top exports to China, making up 71.6% share of total
receipts in 2006.
· Chinese
investments in 2006 reached RMB 2.78 billion, posting a remarkable 9,116%
growth over 2005. This makes China the 4th largest source of approved
foreign direct investments (FDIs) next to Korea, the U.S. and Japan. From
0.2% share in 2005, Chinese investments now make up 11% of total Philippine
approved FDIs.
LIST OF
BILATERAL AGREEMENTS BETWEEN PHILIPPINES AND CHINA 1999 UP TO PRESENT
1999
Agreement on Cooperation in Agriculture and Related Fields
2000
Memorandum of Understanding between Bangko Sentral ng
Pilipinas and the People’s Bank of China on the establishment of
Banking
Institutions in each other’s territories
Agreement between the
Department of Finance and the China National Construction and Agricultural
Machinery Import and Export Corporation on a US$100-million credit facility
to finance agricultural development projects in the Philippines
2001
Cooperation Agreement between the Philippine Chamber of Commerce
and Industry (PCCI) and China Council for the Promotion of International
Trade (CCPIT)
2002
Memorandum of Understanding between the Philippine National Railways and
China National Technical Import Export Corporation and China National
Machinery and Import & Export Corp
2003 Memorandum of
Understanding Regarding the Utilization of the US$400-million Preferential
Buyers' Credit from China to the Philippine s between the Export- Import
Bank of China and the Department of Finance of the Philippines
Letter of Intent between the
Philippine National Oil CO. Exploration Corp. and the China National
Offshore Oil Corp. (CNOOC)
2004 Agriculture of
the Republic of the Philippines and the Ministry of Agriculture of the
People's Republic of China on Fisheries Cooperation
Supplemental Memorandum of
Understanding between North Luzon Railways Corporation and China National
Machinery and Equipment Corporation (Group)
2005 Memorandum of
Understanding on Mining Cooperation between the Department of Trade and
Industry (DTI) and China's Ministry of Commerce (MOFCOM
Memorandum of Understanding
between the Government of the Philippines and the Government of the People’s
Republic of China on the Promotion of Trade and Investment Cooperation
Memorandum of Understanding
between the Government of the Republic of the Philippines and the Government
of the People's Republic of China on the Early Harvest Program under the
Framework Agreement on Comprehensive Economic Cooperation between the
Association of South East Asian Nations and the People’s Republic of China
BILATERAL
MERCHANDISE TRADE
In 2008, the People’s
Republic of China was the Philippines’ third largest trading partner,
accounting for a total of $9.715 billion or 9.2 percent of the total trade
($105.670 B). The 2.7% decline in the total RP-China trade from 2007 to 2008
was due to the slowdown in exports in 2008, but China still remains the
third largest export market of the Philippines for two years now. On the
other hand, China ranked as the Philippines’ fifth largest supplier of
imports in 2008.
APPROVED
FDI FROM PROC
For 2008, total China FDI
totaled Php2.307 billion or US$ 48.06 million. It posted an increase of
almost 27% from 2007’s FDI from China worth Php1.822 billion or US$37.96
million.
With China’s emergence as an
important economic partner of the Philippines, Chinese potential investment
is expected to continually increase. |
