LET’S HAVE MORE ECONOMIC DIPLOMACY WITH CHINA

LET’S HAVE MORE ECONOMIC DIPLOMACY WITH CHINA

By now, everyone knows about the tensions in the West Philippine Sea (WPS). We have all seen the news footage, read the statements, and heard the speeches. And yes, these are real, serious matters. But here’s the thing—political diplomacy and economic diplomacy can, and should, co-exist. They are not sworn enemies.

Despite our territorial disputes, China is still our trading partner. We buy goods from them. They buy goods from us. That’s the simple truth. This reality doesn’t vanish just because the political temperature rises. If anything, it’s even more reason to keep the economic lines open.

To be clear, I’m not saying we should ignore the WPS issue. I’m saying we must compartmentalize—while we defend our sovereignty through political channels, we should also protect and grow our economic interests through trade and investment channels.

Right now, the problem is our trade balance. And not in a good way. For May 2025 alone, Philippine imports from China hit $5.16 billion, while our exports to them were only $1.47 billion. That’s a trade deficit of $3.69 billion in China’s favor—for just one month. Year-to-date figures are even more sobering: $21.7 billion in imports versus $8.18 billion in exports.

So yes, we need to keep trading—but smarter. Our goal should be to make the trade balance more balanced, not tilted so far toward China that it feels like we’re permanently sliding downhill. How do we do that? By pursuing stronger economic diplomacy—trade promotion, investment attraction, and active participation in China’s import market.

Here’s one bright spot: coconuts. According to a report from the Philippine Embassy in Beijing, we’re now the second-largest coconut supplier to China, cornering 27% of the market. In 2020 alone, we exported about 43,700 tons of coconut products worth $62.8 million. China’s coconut demand is massive—importing about 2.5 billion coconuts annually from Southeast Asia, plus 300–350 million coconuts for direct consumer use.

This is where opportunity knocks. We’ve already gained access for our young green coconuts since 2019, alongside our staples like coconut oil, coconut water, coconut sugar, and virgin coconut oil. If China needs billions of coconuts a year, why not aim to supply a bigger chunk of that? Indonesia, Thailand, Vietnam, and Malaysia are also in the race, but with our coconut heritage and expertise, we could be the front-runner.

And coconuts shouldn’t be the end of the story. What else can we export to China? Our integrated circuits, nickel ore, and office machine parts are already among our top exports there. But what about expanding processed food, tropical fruits, marine products, and even creative industry outputs? The market is huge, and not every Filipino-made product is getting a fair shot at that market.

On the flip side, we should also ask: what do we import from China that we can produce locally? Refined petroleum and integrated circuits may be hard to replace, but what about basic machinery, home goods, or textiles? Every peso we keep circulating within the Philippine economy is a peso that strengthens our industries and jobs.

Economic diplomacy is not charity—it’s strategy. We can be firm in protecting our waters and still be shrewd in protecting our economic future. In fact, the two can reinforce each other. A stronger economy gives us more leverage in any negotiation, political or otherwise.

So, while the Philippine Coast Guard patrols the WPS, let our trade and investment teams patrol the vast seas of the Chinese market. We can’t afford to let political heat freeze our economic ambitions. If we play our cards right, we might not just shrink the trade deficit—we might just turn it into an advantage.

Because when you think about it, the better our economic ties are, the stronger our position becomes in every other arena. And in this game, it’s better to be holding both the shield and the ledger.

Ramon Ike V. Seneres, www.facebook.com/ike.seneres
iseneres@yahoo.com, 09088877282, senseneres.blogspot.com

10-12-2025